Chainlink Partners with UBS to Simplify Tokenized Fund Management

Chainlink Partners with UBS to Simplify Tokenized Fund Management

The post Chainlink Partners with UBS to Simplify Tokenized Fund Management appeared first on Coinpedia Fintech News

Chainlink, the industry-standard Oracle platform, is making it easier for banks and financial institutions to work with blockchain and digital assets. 

Its recent pilots and partnerships show how its technology is simplifying workflows, boosting efficiency, and opening up new opportunities for the financial industry. Here’s the latest buzz. 

Simplifying Tokenized Fund Workflows with UBS

In a press release today, Chainlink announced it has launched a new solution that makes it easier than ever for financial institutions to manage digital assets.

The new solution combines Swift messaging with the Chainlink Runtime Environment (CRE), allowing institutions to manage blockchain workflows directly from the same Swift infrastructure. Banks can now access digital assets without upgrading systems, changing processes, or adding new identity and key management tools.

Chainlink’s solution was first tested in a pilot with UBS Tokenize, UBS’s in-house tokenization unit.  Subscriptions and redemptions for a tokenized fund smart contract from UBS were triggered using ISO 20022 messages through CRE and Swift infrastructure.

The CRE processed Swift messages and automatically triggered subscription and redemption workflows in the Chainlink Digital Transfer Agent (DTA).

Sergey Nazarov, Co-Founder of Chainlink, said the new solution shows how smart contracts and technical standards can help financial institutions manage tokenized assets on-chain.

“UBS is demonstrating how the use of smart contract-based technologies can be used by financial institutions to more readily explore new types of product lifecycle composability,” he said. 

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Building on Previous Success

This pilot comes after Swift, Chainlink, and UBS’ 2024 Project Guardian pilot with MAS (Monetary Authority of Singapore), which shows that tokenized fund subscriptions and redemptions can be settled using off-chain cash through Swift.

Chainlink said that its new plug-and-play solution could transform the $100+ trillion global fund industry.

Global Corporate Actions Initiative

Chainlink recently shared that it is partnering with 24 of the world’s largest financial institutions to launch a global corporate actions initiative, to tackle a $58 billion challenge using AI, blockchains, and the Chainlink platform. 

Chainlink is currently trading at $21.45, up 1.22% in the last 24 hours. Analyst Ali Martinez shared that if LINK holds its $20 support, it could climb toward $47, reflecting growing confidence as its adoption and real-world use cases expand.

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FAQs

How does Chainlink simplify digital asset management for banks?

Chainlink combines existing Swift messaging with its Chainlink Runtime Environment (CRE), letting banks manage blockchain workflows for digital assets without needing to upgrade their core infrastructure or processes.

What is the Chainlink Runtime Environment (CRE)?

The CRE is Chainlink’s platform that processes off-chain messages, like Swift messages, and automatically triggers on-chain smart contract actions, abstracting away blockchain complexity for institutions.

What is the purpose of the Chainlink Global Corporate Actions Initiative?

This partnership with 24 major institutions uses AI, blockchain, and the Chainlink platform to standardize and streamline corporate actions (like dividends), solving a costly $58 billion industry challenge.

Source: https://coinpedia.org/news/chainlink-partners-with-ubs-to-simplify-tokenized-fund-management/