Chainlink and UBS Unleash Tokenization Revolution for $100T Fund Industry via Swift Workflow

Chainlink, UBS Advance $100T Fund Industry Tokenization via Swift Workflow In a groundbreaking development, Chainlink has launched a solution enabling banks to interact with tokenized investment funds using the traditional finance messaging system, Swift. This innovation, which uses Chainlink's Runtime Environment (CRE) to process subscriptions and redemptions for tokenized funds, aims to unlock the benefits of blockchain technology for the $100 trillion global fund industry. The pilot, conducted in collaboration with UBS, follows previous work by Chainlink on Project Guardian and a separate pilot. According to Chainlink, its technical process allows banks to interact with tokenized investment funds through Swift, enabling institutions to access blockchain infrastructure using existing tools. "We're excited to bring the benefits of blockchain technology to the traditional finance industry," said Sergey Nazarov, Co-Founder of Chainlink. "Our solution enables banks to seamlessly integrate with tokenized funds, making it easier for investors to access and manage their investments." The use of Swift, a widely adopted messaging system in traditional finance, is significant. It allows banks to interact with tokenized funds without having to adopt new infrastructure or systems. "This collaboration demonstrates the potential for blockchain technology to be integrated into existing financial systems," said UBS spokesperson. "We're pleased to be part of this pilot and look forward to exploring further applications." The $100 trillion global fund industry has long been seen as a prime candidate for tokenization, which involves converting traditional assets into digital tokens on a blockchain. Tokenized funds offer increased efficiency, transparency, and security, making them an attractive option for investors. Chainlink's solution uses CRE to process subscriptions and redemptions for tokenized funds, enabling institutions to access blockchain infrastructure using existing tools. This approach is seen as a key factor in the adoption of blockchain technology by traditional finance institutions. The pilot with UBS marks a significant step forward in the integration of blockchain technology into traditional finance. As the industry continues to evolve, it will be interesting to see how this collaboration shapes the future of tokenization and its applications. Background: Chainlink is a leading provider of decentralized oracle services, which enable smart contracts on blockchain platforms to access real-world data. The company's Runtime Environment (CRE) is a key component of its solution, allowing for secure and efficient processing of transactions. The $100 trillion global fund industry has been slow to adopt blockchain technology due to concerns over security, scalability, and regulatory compliance. However, the potential benefits of tokenization, including increased efficiency and transparency, have made it an attractive option for investors. Implications: The integration of blockchain technology into traditional finance through Swift is a significant development. It opens up new possibilities for institutions to access and manage their investments more efficiently and securely. As the industry continues to evolve, it will be interesting to see how this collaboration shapes the future of tokenization and its applications. Next Developments: Chainlink has stated that it plans to continue working with UBS and other financial institutions to further develop and refine its solution. The company also plans to explore additional applications for its technology in traditional finance. In conclusion, Chainlink's solution enabling banks to interact with tokenized investment funds using Swift is a significant step forward in the integration of blockchain technology into traditional finance. As the industry continues to evolve, it will be interesting to see how this collaboration shapes the future of tokenization and its applications. *Reporting by Coindesk.*