SWIFT, UBS Asset Management, and blockchain oracle provider Chainlink (LINK) have joined forces to successfully complete a pilot to settle tokenized transactions on the Swift network.
According to Swift’s new announcement, this initiative will allow digital asset transactions to be settled off-chain through fiat payment systems around the world.
The goal of the pilot was to address challenges in traditional financial operations, including payment delays and real-time transparency. We leveraged Chainlink and Swift to settle subscriptions and redemptions for tokenized investment vehicles.
Jonathan Ehrenfeld, Head of Strategy at SWIFT, says:
“For digital assets to be adopted globally, they must integrate seamlessly with existing payment systems and digital currencies. MAS’s work with UBS Asset Management and Chainlink on Project Guardian leverages the global Swift network to connect digital assets with existing systems.
“This initiative is consistent with our strategy to leverage Swift’s existing infrastructure to provide the financial institution community with a secure and scalable way to transact across a variety of digital asset classes and currencies.”
Chainlink co-founder Sergey Nazarov said:
“Chainlink enables institutions to reuse Swift’s infrastructure to facilitate settlement for digital asset transactions. We are excited to see the adoption of these off-chain payment capabilities and how they will increase capital flows and expand the user base of digital assets.”
At a conference earlier this year, Nazarov said that allowing traditional financial institutions to interact with blockchain is the start of the industry’s path to “hundreds of trillions of dollars.”
“In fact, if even a small percentage of the 11,000 banks and institutions can start interacting with blockchain in an efficient and secure way, whether on public or private chains, the market size of the blockchain industry will grow even larger. The market size explodes from there, including RWA (real assets), tokenized funds, and stablecoins.
So it goes from just a few trillion dollars to tens of trillions of dollars and actually hundreds of trillions of dollars.”
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