Swift, UBS, Chainlink pilot tokenised fund settlements

The global mutual fund market is worth $63t.

Swift, UBS Asset Management, and Chainlink have completed a pilot for settling tokenised fund subscriptions and redemptions over Swift’s network, which connects more than 11,500 financial institutions worldwide. 

This initiative allows digital asset transactions to settle through established fiat payment systems, presenting a significant leap in the integration of blockchain technology within traditional financial frameworks.

Traditional fund operations have long been hindered by inefficiencies in the subscription and redemption processes, often requiring manual interventions, delaying settlements, and offering limited real-time transparency. These challenges lead to higher operational costs, reduced liquidity, and missed opportunities in the $63t global mutual fund market. 

By linking blockchain technology with Swift’s established network, financial institutions can automate fund transaction lifecycles without requiring global adoption of on-chain payments.