A new partnership between Swift, UBS Asset Management, and Chainlink aims to reshape the future of fund operations.
By leveraging blockchain technology, the trio successfully piloted a solution streamlining tokenized fund subscriptions and redemptions.
This innovation, built on the backbone of the Swift network, promises to revolutionize the $63 trillion global mutual fund market .
Swift, UBS Asset Management, and Chainlink aim to change the fund operations environment by successfully piloting a blockchain-based solution for tokenized fund settlements.
This initiative leverages the Swift network to integrate digital assets with traditional fiat payment systems seamlessly.
The pilot addresses long-standing inefficiencies by automating subscription and redemption processes, unlocking new opportunities in the $63 trillion global mutual fund market.
Jonathan Ehrenfeld, Head of Strategy, Swift, said, “Our work with UBS Asset Management and Chainlink in MAS’ Project Guardian leverages the global Swift network to bridge digital assets with established systems.”
The pilot demonstrated how financial institutions can use blockchain, Chainlink, and Swift to automate and settle tokenized fund subscriptions and redemptions. It may also help enable straight-through payment processing without requiring full on-chain adoption.
The pilot builds on previous collaborations with UBS Asset Management and SBI Digital Markets to develop a digital subscription and redemption system for tokenized funds.
The pilot is part of MAS’ Project Guardian, a global initiative uniting policymakers and industry leaders to boost liquidity and efficiency through asset tokenization.
It also leverages Swift’s existing infrastructure for seamless, end-to-end payment orchestration in fund subscriptions and redemptions.
Swift had already demonstrated its infrastructure’s secure, scalable connectivity across blockchains. With Chainlink’s platform, the pilot enables automatic minting and burning of UBS fund tokens by coordinating interactions between all required actors.
The Monetary Authority of Singapore launched MAS’ Project Guardian. Project Guardian explores using blockchain and DeFi technologies to enhance financial market efficiency and liquidity through asset tokenization.
This initiative partners with global regulators, financial institutions, and tech firms to address compliance, security, and interoperability in digital assets.
Through pilots with industry leaders like UBS and JPMorgan, Project Guardian tests blockchain applications such as asset tokenization and on-chain settlement to resolve key market inefficiencies.
With this project, the Monetary Authority of Singapore aims to position the Asian financial hub as a regulated digital finance innovation leader.