Swift’s tokenized fund settlement pilot with UBS and Chainlink deemed a success
Swift concluded a pilot program on November 5 to enhance tokenized fund settlement and redemption using fiat currency, collaborating with UBS Asset Management and Chainlink. The initiative aims to connect digital asset transactions with fiat payment systems, serving over 11,500 financial institutions in more than 200 countries. Traditional fund processes face inefficiencies, including manual interventions and delays, leading to higher costs and missed opportunities. The pilot utilized blockchain technology to automate these processes, allowing efficient on-chain processing for tokenized fund transactions without direct on-chain payments. This effort builds on previous initiatives by UBS Asset Management and aligns with Singapore’s Monetary Authority’s Project Guardian. Swift’s infrastructure facilitated end-to-end payment orchestration, while Chainlink coordinated transactions for UBS’s tokenized investment fund. The collaboration aims to integrate digital assets with existing payment systems, potentially increasing capital flows and expanding the digital asset user base.
