Swift, UBS, Chainlink Pilot New Tokenized Fund Settlement
The Chainlink, Swift, and UBS partnership for this settlement fund will enhance global finance by integrating blockchain with traditional fiat systems under MAS’s Project Guardian.
Swift, UBS, and Chainlink Test New Fund Settlement Solution
Swift, UBS Asset Management, and Chainlink have completed a pilot for tokenized fund settlement under the Monetary Authority of Singapore’s (MAS) Project Guardian. This project leverages Swift’s vast global messaging network to streamline tokenized fund processes by integrating them with existing fiat payment systems rather than relying solely on blockchain-based payments.
The pilot addresses long-standing inefficiencies in traditional fund transactions, such as delays in redemptions and subscriptions that often impact liquidity and raise operational costs. Swift’s infrastructure allows real-time fund redemptions and subscriptions, demonstrating that tokenized fund processes could be automated, cost-effective, and transparent.
The aim is to reduce the manual steps that slow down transactions, creating a more seamless process that benefits investors and fund managers.
Chainlink’s Role in Blockchain Integration
Chainlink’s involvement provides critical blockchain infrastructure for the pilot. At Swift’s recent Sibos conference, Chainlink co-founder Sergey Nazarov highlighted the potential for blockchain integration with Swift’s network.
He stated that this integration could significantly improve capital flow across global markets since it combines off-chain and on-chain features. Nazarov noted that the pilot’s off-chain payment support reflects a shift toward a more adaptable model for digital finance.
Project Guardian, led by MAS, has facilitated similar collaborations with other major financial institutions. The project aims to explore and implement tokenization in finance, focusing on use cases such as foreign exchange and tokenized funds.
Earlier this month, UBS introduced its tokenized fund on the Ethereum blockchain, the “UBS USD Money Market Investment Fund Token” (uMINT).
Future of Tokenized Finance
While delivering his speech at a recent event, MAS deputy managing director Leong Sing Chiong praised the successes achieved in Project Guardian and noted the potential for tokenized finance to transform foreign exchange and fund markets.
However, he acknowledged the limitations of current trials, highlighting that several promising use cases have been demonstrated, but achieving industry-wide scale remains a challenge. Therefore, Sing Chiong noted the need for an infrastructure that supports tokenized solutions across networks, allowing them to scale beyond individual applications.
Lista DAO Taps Chainlink for Secure Price Feeds Integration
Meanwhile, Lista DAO (a decentralized stablecoin lending protocol) has announced its latest integration with Chainlink Price Feeds to enhance security and data accuracy for users in the decentralized finance (DeFi) market. The partnership supports multiple tokens, including weETH, wstETH, ezETH, and STONE, which play a vital role in Lista DAO’s staking ecosystem.
This move aims to protect Lista DAO’s data from manipulation, ensuring users can access accurate price information, which is crucial for making staking decisions. Chainlink Price Feeds, known for their precision and security, enable Lista DAO to provide users with a dependable data source, enhancing the trust and reliability of its platform.
Decentralized Oracles for Data Integrity in Chainlink
Notably, the leading decentralized oracle network delivers secure, real-time price data through its independent, tamper-proof nodes. This setup allows blockchain-based applications like Lista DAO to access live and accurate market prices, which is essential for staking and other DeFi activities.
The integration with Chainlink provides Lista DAO with a consistent data flow, which is critical in volatile markets where real-time information significantly impacts asset security. By leveraging Chainlink’s technology, Lista DAO bolsters the integrity of its liquid staking offerings, a popular feature within its ecosystem.
Liquid staking, a concept gaining traction in the DeFi sector, enables users to stake various cryptocurrencies while maintaining access to their funds. By adding Chainlink Price Feeds, Lista DAO can offer more transparent, secure, and reliable staking services, enhancing the platform’s appeal in the competitive DeFi landscape.
Enhanced Liquid Staking Experience for Lista DAO Users
Moreover, Chainlink’s reputation for delivering trustworthy price feeds further solidifies Lista DAO’s credibility as a DeFi platform focused on user security and data dependability. As DeFi grows, accurate price data becomes increasingly critical, directly influencing user funds and investment outcomes.
Adding Chainlink Price Feeds ensures that Lista DAO’s users are protected from data inaccuracies, fostering an environment of trust. Lista DAO stated that this integration will contribute to setting a new standard for transparency in the liquid staking industry.
The platform expects this development to make the platform an attractive choice for DeFi participants looking for reliable staking options in the crypto market.
