The Convergence of Swift and Blockchain

In a pilot project conducted with UBS, the CRE system managed tokenized fund transactions via the ISO 20022 messaging standard used by Swift. Blockchain workflows were triggered directly from UBS’s existing systems upon receiving Swift messages, and subscriptions and payments were automatically processed through the Chainlink Digital Transfer Agent.

This approach allows banks to integrate blockchain technology while continuing to use familiar financial instruments. Chainlink’s infrastructure manages the remaining technical processes, providing a secure and efficient environment for institutional applications.

Pilot Program for the Trillion-Dollar Fund Industry

The pilot aims to test the advantages of blockchain technology for the $100 trillion global fund industry. The project builds on previous pilot initiatives, including the Project Guardian initiative led by the Monetary Authority of Singapore.

Chainlink’s solution increases interoperability by enabling institutions to use Swift to trigger on-chain events. Additionally, a separate pilot involving 24 global banks and financial infrastructure providers (such as DTCC and Euroclear) combines blockchain and AI to extract and standardize data from corporate action announcements.

Market and Industry Commentary

Experts state that this development marks a critical turning point for tokenized funds and digital asset products. The integration of Swift with blockchain simplifies institutional adoption of blockchain infrastructure and accelerates innovation within the sector.

The collaboration between Chainlink and UBS serves as a bridge between traditional finance and the blockchain world. Consequently, corporate action processes, which are estimated to cost $58 billion annually, become more efficient, transparent, and faster.

 In the comment section, you can freely share your comments and  opinions about the topic. Additionally, don’t forget to follow us on Telegram, YouTube, and Twitter for the latest news and updates.

The post Tokenization in the Fund Industry: Major Move from Chainlink and UBS! appeared first on Coin Engineer.

While UBS did not disclose exactly what financial instruments will be in the fund, it did say that it will provide investors with “access to high-quality money market instruments” and a conservative, risk-managed framework. “We are seeing an increasing appetite from investors for tokenized financial assets across asset classes,” said Thomas Kaegi, co-head of UBS’s Asia operations.

Ethereum is the largest blockchain network for tokenization of real-world assets, currently with over $3 billion in tokenized assets. According to the RWA.xyz dashboard, U.S. Treasury Debt is the largest portion of these assets. The value of tokenized assets on Ethereum has also increased by 4% in the last 30 days.

Might interest you: What is BabyDoge?

BlackRock’s $BUIDL fund is the largest market cap U.S. Treasury product with over $523 million, while Franklin Templeton’s $FOBXX On-Chain U.S. Government Money Fund has a market cap of approximately $408 million. With UBS’s uMINT token, the possibilities of blockchain-based tokenization for investors are expanding.

You can join our Telegram channel to not miss the news and stay informed about the crypto world.

The post UBS Launches Tokenized Money Market Investment Fund on Ethereum appeared first on Coin Engineer.