30s Summary

Swift, UBS and Chainlink have completed a successful trial on fiat settlement for tokenized funds under the MAS Project Guardian. The test demonstrated that Swift can handle blockchain integration, simplifying off-chain settlements for institutional investors. Chainlink’s co-founder, Sergey Nazarov, claims the trial enables investors to join tokenized funds through a familiar Swift transfer. The trial also proved Swift and Chainlink could manage automatic minting and burning of the UBS tokenized fund tokens, opening secure ways for traditional financiers to gradually enter the market.

Full Article

Chainlink, Swift, and UBS have run a successful trial on fiat settlement for tokenized funds. This was done under the MAS Project Guardian. Swift was able to smoothly handle blockchain integration, which made off-chain settlements for institutional investors a lot easier, especially since these investors are already familiar with the platform.

The test showed how blockchain and tokenization could enhance Swift, rather than replace it. Swift connects over 11,500 financial institutions in more than 200 countries. As tokenized funds become more popular globally, especially in places like Singapore, it’s crucial to be able to quickly and efficiently access cash.

Chainlink’s co-founder, Sergey Nazarov says this test shows the potential of their work with Swift. According to Nazarov, this pilot allows institutional investors to subscribe to tokenized funds through a Swift transfer, which is already familiar to them. They don’t need to use stablecoins, central bank digital currencies, or any other digital assets.

The pilot allowed Swift and Chainlink systems to handle automatic minting and burning of UBS tokenized fund tokens. This is believed to be a step towards helping the blockchain industry, by offering a reliable and secure way for the world’s traditional finance investors to slowly transition into the market.