Chainlink And UBS Tap Swift Network For Tokenized Funds Settlement Pilot

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As a seasoned researcher with a keen eye for technological advancements and their impact on financial systems, I find the recent collaborative efforts between Swift, UBS Asset Management, Chainlink, and the Monetary Authority of Singapore truly intriguing. The pilot program showcased by Project Guardian offers a promising glimpse into the future of tokenized fund transactions, aiming to streamline processes, increase market efficiency, and bolster liquidity.

In a pioneering initiative, Swift, UBS Asset Management, and Chainlink have demonstrated an innovative method for settling transactions involving tokenized funds. The goal is to enhance market fluidity and efficiency.

Via the Monetary Authority of Singapore’s Project Guardian, a global coalition of influential figures from both industry and policy-making sectors collaborated to trial Swift’s infrastructure for facilitating off-chain settlements of tokenized funds using traditional currency systems with their international network of over 11,500 financial institutions in more than 200 countries.

Chainlink, SWIFT, UBS, Streamline Fund Transactions with Blockchain

Through Project Guardian, led by the Monetary Authority of Singapore, a collaboration between Swift, UBS Asset Management, and the blockchain oracle network Chainlink has recently completed a successful trial concerning the use of tokenized funds for settlements.

This initiative takes advantage of Swift’s wide-reaching global financial messaging network, which is connected to over 11,500 financial institutions. It aims to connect tokenized fund procedures effortlessly with conventional fiat payment systems.

The results showed how the amalgamation of blockchain with existing financial networks could reduce the redundancy around the fund subscription and redemption process that has traditionally included manual steps, delayed settlements, and a lack of transparency.

The mentioned issues contribute to the increased costs and reduced cash flow in mutual funds, affecting the entire $63 trillion mutual fund industry worldwide.

MAS Unveils New Initiatives to Advance Tokenization

The Monetary Authority of Singapore recently announced new strategies to accelerate the business development of asset tokenization, leveraging insights from over 40 institutions following over 15 trials.

During the first MAS Layer One Summit, Leong Sing Chiong, Deputy Managing Director of MAS, emphasized that significant financial institutions involved in Project Guardian effectively showcased the application of tokenization for foreign exchange and funds.

Sing Chiong likewise pointed out the constraints of these trials, noting that while there are potential applications worth mentioning, they have yet to garner the widespread industry adoption they desire. He further stated, “So far, no one has managed to attain substantial growth,” and highlighted the importance of developing necessary support systems that will allow promising use cases to expand beyond individual networks.

The pilot set up an automated processing framework that enabled seamless transactions of funds without fully migrating to on-chain payments. Chainlink’s platform helped the different parties coordinate and automate basic stipulations of the transactions, such as the issuance and burning of tokens of the funds. It is now up to see how all these events will ipact Chainlink price.

In partnership with UBS Asset Management and SBI Digital Markets, Swift was working on creating a system for the digital subscribing and unsubscribing of tokenized funds. This trial showcased that Swift could safely link financial institutions to various blockchains while utilizing its network and expertise.

Chainlink Powers TRON’s $6.5B DeFi Ecosystem

Just now, Justin Sun, the founder of TRON, revealed that his firm has become part of Chainlink SCALE. Immediately, he declared that Chainlink Data Feeds would serve as the official oracle for the TRON Foundation.

This strategic alliance aims to boost the Total Value Locked in Decentralized Finance (DeFi) on TRON beyond $6.5 billion, leveraging Chainlink’s robust infrastructure. This collaboration also opens up fresh avenues for TRON’s $60 billion ecosystem, which encompasses stablecoins and real-world assets, while reinforcing TRON’s standing in the DeFi sector.

As a researcher, I’ve noticed that Chainlink’s price has dropped significantly below a crucial support point on the weekly chart, indicating a potential 45% downfall. This follows LINK reaching a 50-month low relative to Bitcoin, causing concern among investors about hitting another market bottom. Despite its strong performance in fundamental analysis, Chainlink’s price has struggled to maintain its ground, showing a minimal increase of 1% over the past day, currently trading at $10.65.

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2024-11-05 17:47