SBI, UBS and Chainlink complete pilot for automated tokenized fund solution

by

As a seasoned crypto investor with over a decade of experience in the industry, I find this recent collaboration between SBI Digital Markets, UBS Asset Management, and Chainlink to be a game-changer. Having witnessed the evolution of blockchain technology and its potential applications, I am confident that this solution will revolutionize the asset management sector.

3 major entities – SBI Digital Markets, UBS Asset Management, and Chainlink – have successfully concluded a test run demonstrating the application of smart contract technology in administering fund tokens.

On November 18th, the companies made public that their new solution introduces automated, tokenized investment fund management to the market and makes use of the Chainlink (LINK) network’s infrastructure. With this solution, users can now automate their tokenized asset management tasks, opening up blockchain technology possibilities for the $132 trillion global managed assets market.

urrently, the total real-world assets on-chain represent a market of around $13.2 billion.

Solution allows for efficient scaling of tokenized funds 

As per a recent announcement, the trial of the tokenized fund showcased that fund managers could effectively expand their offerings on multiple blockchains and through various distributors by utilizing smart contracts and Chainlink’s Cross-Chain Interoperability Protocol. This method allows for increased efficiency in scaling fund products.

At the heart of this project lies the Digital Transfer Agent (DTA) smart contract system, a cutting-edge approach to managing funds that employs various Chainlink oracle networks. SBI’s custodian and distribution arm have successfully launched this model, which allows for subscriptions and redemptions across multiple blockchain platforms.

As the tokenized funds sector matures to lure global heavyweights, there’s a growing need for automated on-chain management. Interestingly, a recent study showed that an overwhelming 93% of service providers in this field don’t fully automate their data inputs and operational workflows. This absence of automation presents significant roadblocks for traditional fund managers.

In essence, smart contracts, oracle networks, and tokenized funds offer a route for the asset management sector to achieve complete automation.

Winston Quek, CEO of SBI Digital Markets, stated that this innovative method of creating and managing fund structures using smart contracts offers a powerful solution for fund managers and their service providers to introduce novel digital financial products while reducing operational expenses for investors – something they are keenly seeking.

The solution, currently live on various blockchain testnets, will soon go to mainnet.

At the Singapore Fintech Festival, SBI Digital Markets, UBS Asset Management, and Chainlink unveiled their jointly developed solution, introducing it under the umbrella of the Monetary Authority of Singapore’s ‘Project Guardian.’ In simpler terms, these entities presented a new technology at the Singapore Fintech Festival as part of the Monetary Authority of Singapore’s ‘Project Guardian’ initiative.

In the realm of my ongoing research, I’m exploring an exciting new phase that stems from a collaboration between Swift, UBS Asset Management, and Chainlink. The goal of this partnership is to establish a connection between tokenized assets and traditional payment systems, a bridge that could revolutionize the financial landscape. Notably, UBS has also introduced a trial project in this domain, which they’ve dubbed “UBS Digital Cash,” designed for seamless cross-border transactions.

Read More

2024-11-18 19:32