SWIFT, UBS Asset Management and blockchain oracle provider Chainlink (LINK) have joined forces to successfully complete a pilot for settling tokenized transactions on the Swift network.
According to a new announcement from Swift, the initiative allows for digital asset transactions to settle off-chain with fiat payment systems all over the world.
The aim of the pilot was to address problems in traditional finance operations, including delayed settlements and real-time transparency. It utilized Chainlink and Swift to settle subscriptions and redemptions for tokenized investment vehicles.
Says SWIFT head of Strategy Jonathan Ehrenfeld,
“For digital assets to be adopted globally, they must seamlessly integrate with both existing payment systems and digital currencies. Our work with UBS Asset Management and Chainlink in MAS’ Project Guardian leverages the global Swift network to bridge digital assets with established systems.
This initiative aligns with our strategy to provide our community of financial institutions with a secure and scalable way to transact across multiple digital asset classes and currencies, leveraging Swift’s existing infrastructure.”
Says Chainlink co-founder Sergey Nazarov,
“Chainlink is enabling institutions to reuse Swift’s infrastructure to facilitate payments for digital asset transactions. I am very excited by the upcoming adoption of these off-chain payment capabilities and how they will increase the flow of capital and expand the possible user base of digital assets.”
At a conference earlier this year, Nazarov said that getting traditional financial institutions to interact with blockchains was the beginning of the industry’s path to “hundreds of trillions.”
“If you can actually get even a very small percentage of those 11,000 banks and institutions to start interacting with blockchains in an efficient and secure way, the market size of the blockchain industry, whether it’s a public chain or a private chain, whether it’s an RWA (real-world asset) or a tokenized fund or a stablecoin, the market size really explodes from there.
So it just kind of goes from a few trillion [dollars] to tens of trillions and it’s really the path to hundreds of trillions [of dollars].”
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