Swift, UBS, and Chainlink pilot blockchain tokenized fund 

Swift, in collaboration with UBS Asset Management and Chainlink, has completed a pilot program aimed at simplifying tokenized fund transactions using its existing financial network.

This initiative, launched as part of Singapore’s Project Guardian, explored how blockchain technology could integrate digital assets with fiat payment systems used by more than 11,500 financial institutions worldwide.

According to Swift’s press release, the goal was to eliminate common delays and inefficiencies in fund operations by automating subscription and refund processes, thereby reducing costs and increasing transparency.

Tokenized funds are an emerging approach to finance where traditional assets, such as mutual funds or stocks, are digitally represented on a blockchain. This allows for automated operations and ideally faster and safer processes.

Swift’s built-in infrastructure

The pilot focused on enabling subscription and use of these tokenized funds without requiring a universal blockchain-based payment system. Instead, it showed how Swift’s existing infrastructure can support transactions by issuing fiat payments for digital assets.

Traditional fund operations often involve manual steps and lack real-time transparency, leading to higher costs and missed investment opportunities. Through this pilot program, Swift, UBS and Chainlink (LINK) demonstrated how blockchain technology can streamline these processes and create a more efficient system.

The collaboration used Chainlink’s technology for blockchain interactions and Swift’s network for fiat payments, achieving end-to-end automation without disrupting existing systems.

This pilot is part of a broader effort by the Monetary Authority of Singapore and industry participants to improve the efficiency and liquidity of financial markets.