In a significant development for the asset management industry, SBI Digital Markets, UBS Asset Management, and Chainlink have successfully completed a pilot program that demonstrates the potential of smart contracts in managing tokenized funds.
The pilot program showcased how fund managers can utilize smart contracts and Chainlink"s Cross-Chain Interoperability Protocol to enhance the scalability of their products. The Digital Transfer Agent smart contract model, central to this initiative, employs multiple Chainlink oracle networks to facilitate multi-chain subscriptions and redemptions, streamlining operations for fund managers and service providers.
Despite the current lack of automation in the fund services sector, the introduction of smart contracts and oracle networks offers a pathway to overcome these challenges and enable a more efficient and automated approach to fund management. The CEO of SBI Digital Markets emphasized the transformative potential of this new model, stating that it empowers both fund managers and service providers to deliver innovative on-chain financial products.
The pilot program is currently operational on various blockchain testnets, with plans to transition to the mainnet in the near future. This collaboration between SBI Digital Markets, UBS Asset Management, and Chainlink is part of a broader trend of integrating blockchain technology with traditional financial systems. The successful completion of this pilot program marks a pivotal moment for the tokenized funds sector, as it demonstrates the feasibility of leveraging blockchain technology to enhance operational efficiency.