Swift, UBS, and Chainlink pilot blockchain tokenized fund

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As a seasoned crypto investor with a keen eye for emerging trends, I find Swift’s collaboration with UBS Asset Management and Chainlink to be a promising development. Having navigated through the complexities of traditional fund operations and the intricacies of blockchain technology, I appreciate the potential this initiative holds in streamlining processes and increasing transparency.

Working alongside UBS Asset Management and Chainlink, Swift has completed a trial project that aims to streamline the process of tokenized fund transactions using their current financial infrastructure.

As a researcher involved in the Project Guardian initiative, I delved into investigating the potential of blockchain technology to interweave digital assets seamlessly with the global network of approximately 11,500 financial institutions’ fiat payment systems.

The aim, as stated in a Swift press release, was to tackle frequent bottlenecks and ineffectiveness in fund management by computerizing the subscription and withdrawal procedures. This would lead to reduced expenses and enhanced clarity due to these automated processes.

Digital representation of traditional financial assets like mutual funds or stocks on a blockchain is a modern strategy gaining traction in the finance sector. It facilitates automatic transactions and, theoretically, accelerates and strengthens transactional procedures.

Swift’s established infrastructure 

The pilot aimed to facilitate the subscribing and cashing out of these digital fund tokens without necessitating a global blockchain-based transaction network. Instead, it showed that Swift’s current framework was capable of handling transactions by coordinating traditional money transfers for digital assets.

In many cases, conventional fund operations rely on manual procedures and lack immediate visibility, which can result in increased expenses and squandered investment possibilities. By demonstrating the potential of blockchain technology to simplify these tasks, Swift, UBS, and Chainlink (LINK) have highlighted a path toward a more efficient and transparent system.

As a crypto investor, I’ve been excited about the partnership that leverages Chainlink’s technology for seamless blockchain transactions and Swift’s robust network for traditional currency exchanges. This innovative alliance has allowed for end-to-end automation in a way that doesn’t disturb the existing financial infrastructure, making it a significant stride towards the future of finance.

As a researcher engaged in this project, I am contributing to Singapore’s Monetary Authority’s broader initiative aimed at boosting the efficiency and liquidity within our financial markets. This collaborative endeavor involves key players from the industry.

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2024-11-05 18:25