Swift, UBS, Chainlink Pilot New System for Tokenized Fund Settlements

Swift, the global financial messaging network, has teamed up with UBS Asset Management and Chainlink to launch a pioneering pilot program for settling tokenized fund transactions. This move could streamline digital finance, making fund transactions faster and more efficient. With over $63 trillion in the global mutual fund market, this initiative has the potential to bring significant changes to digital asset investments.

Read on!

Swift’s Announcement Marks a Milestone

On November 5, 2024, Swift announced that, together with UBS Asset Management and Chainlink, it successfully completed a pilot program for settling tokenized fund subscriptions and redemptions. By using Swift’s infrastructure, financial institutions can now handle cash settlements for tokenized funds, a shift that could simplify and speed up the entire process.

This development builds on a previous pilot by the Monetary Authority of Singapore (MAS), which demonstrated the benefits of using Swift’s network for settling digital asset transactions. By integrating digital assets with Swift’s infrastructure, financial institutions can securely complete transactions alongside traditional fiat payment systems, creating a bridge between traditional and digital finance.

Over 11,500 financial institutions worldwide are now positioned to manage digital transactions more efficiently, introducing a new level of speed and security in global finance.

Challenges In Traditional Fund Operations

Traditional fund operations often face several challenges. The processes for subscribing and redeeming funds can be slow and need manual steps, causing delays and higher costs. This makes it harder to move money and can lead to missed chances in the $63 trillion global mutual fund market. 

The new pilot program aims to fix these issues by enabling smooth transactions using blockchain technology, Chainlink’s platform, and Swift’s network.

Understanding Chainlink’s Role

Chainlink’s technology is central to the program, allowing Swift to coordinate transactions between multiple parties and automate the process of buying and selling fund tokens. This means that when investors buy or sell fund tokens, the transactions can occur in real-time, reducing delays and eliminating many traditional hurdles.

The pilot’s automated approach makes it easier for investors to manage their assets smoothly and securely on Swift’s network.

Chainlink Co-Founder Sees Big Potential

Chainlink Co-founder Sergey Nazarov expressed his enthusiasm for the program, noting that it could attract more capital into digital assets and strengthen the financial system as a whole. According to Nazarov, the adoption of these new payment methods could represent a major step forward for digital finance.

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Chainlink Price Action

Analyzing the LINK chart, we can see a Head and Shoulders pattern forming. This is a classic bullish reversal signal, with the neckline positioned between $11.50 and $12.00. 

This pattern suggests that if LINK successfully reclaims and maintains its position above the neckline, it could experience a continued rise of about 40%.

If Chainlink manages to break above this resistance level, it could trigger a price surge of up to $15.00. Currently, LINK is trading at around $10.58, down 1% in the last 24 hours.

With Swift, UBS, and Chainlink leading the charge, the future of finance may soon look very different—faster, smarter, and seamlessly connected.