Swift, UBS Asset Management, and Chainlink have completed a successful pilot project that enables fiat settlement of tokenized fund transactions using Swift's existing infrastructure.

The goal of this project is to improve efficiency in the global mutual fund market, which is valued at $63 trillion, by integrating blockchain technology with traditional financial systems.

This integration will connect 11,500 institutions and streamline manual processes, reducing costly settlement delays that impact liquidity.

The solution utilizes Chainlink's platform and the Swift network to enable straight-through processing of payments, eliminating the need for widespread adoption of on-chain payments.

Jonathan Ehrenfeld, Head of Strategy at Swift, emphasized the importance of seamless integration between digital assets and existing payment systems for global adoption.

This pilot project builds on previous collaborations between UBS Asset Management and SBI Digital Markets, focusing on the development of a Digital Subscription and Redemption system for tokenized funds.

Sergey Nazarov, Co-Founder of Chainlink, highlighted that this initiative allows institutions to utilize Swift's infrastructure for digital asset payments, expressing optimism that the adoption of off-chain capabilities will enhance capital flow and expand the user base for digital assets.