NewsBinance Square

Chainlink, UBS & SWIFT Join Forces to Modernize Funds

Chainlink, UBS, and SWIFT pilot tokenized fund workflows to transform the $100 trillion asset management industry.

  • Chainlink, UBS, and SWIFT are testing tokenized fund operations.
  • The pilot aims to streamline and modernize fund distribution.
  • Tokenization could reshape the $100 trillion asset industry.

In a significant step toward transforming the traditional financial system, Chainlink, UBS, and SWIFT have launched a pilot program to explore tokenized fund workflows. Their collaborative effort aims to modernize how investment funds are issued, transferred, and settled — potentially revolutionizing the $100 trillion global fund industry.

This pilot is part of a growing movement where traditional finance (TradFi) players are embracing blockchain technology to improve efficiency, reduce costs, and boost transparency. By tokenizing funds, financial institutions can automate complex processes and enable real-time settlement, opening new opportunities for both institutions and investors.

Why Tokenization Matters for the $100T Fund Industry

Tokenization refers to converting rights to an asset — in this case, an investment fund — into a digital token on a blockchain. This method allows funds to be moved and managed more easily across platforms and jurisdictions. For a global industry handling trillions of dollars, this is a game-changer.

The pilot by Chainlink, UBS, and SWIFT focuses on using blockchain-based workflows to distribute and settle tokenized funds between multiple financial entities. Chainlink’s interoperability protocol plays a key role in enabling communication between different blockchain networks and traditional financial infrastructure.

What This Means for the Future of Finance

This pilot is not just a technological experiment — it’s a clear signal that legacy institutions are preparing for a blockchain-powered future. By aligning with Chainlink, UBS and SWIFT are acknowledging the value of decentralized infrastructure in making traditional finance more efficient.

If successful, this initiative could spark a broader wave of tokenization across asset classes, reducing friction and enhancing access for investors worldwide. More importantly, it highlights that the future of asset management may lie in cross-chain, tokenized fund workflows — bringing a much-needed upgrade to legacy systems.

Read Also :

Disclaimer: The content on CoinoMedia is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency investments carry risks, and readers should conduct their own research before making any decisions. CoinoMedia is not responsible for any losses or actions taken based on the information provided.

Aurelien Sage

Aurelien Sage is a blockchain enthusiast and writer, crafting insightful articles on decentralized technologies, Web3, and the future of finance. His work simplifies complex concepts, empowering readers to navigate the evolving crypto landscape with confidence.

Related Articles

Back to top button