A pilot project involving Swift, UBS, and Chainlink has successfully demonstrated the integration of traditional payment systems with tokenized assets, highlighting a significant move towards bridging traditional finance and crypto. This initiative is part of Project Guardian and aims to simplify the processes associated with the $63 trillion mutual fund industry by addressing inefficiencies related to manual interventions and settlement delays. Utilizing Chainlink’s platform for token minting and burning along with Swift’s infrastructure, the pilot allows financial institutions to efficiently handle the complete tokenized fund lifecycle—from subscriptions to redemptions—without necessitating a complete shift to on-chain transactions. The project aligns with the goals of the Monetary Authority of Singapore to promote asset tokenization for improved financial market operations. Key figures from Swift and Chainlink emphasized the potential for increased capital flow and greater accessibility to digital assets for traditional finance institutions as the financial sector continues to explore and adopt digital asset solutions.

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