In a significant advance towards modernizing finance, Swift, UBS Asset Management, and Chainlink have completed a pilot for tokenized fund settlement as part of the Monetary Authority of Singapore’s Project Guardian. This pilot integrates Swift’s extensive global financial messaging network with traditional fiat payment systems, allowing transactions without requiring exclusive blockchain payment methods. Unlike typical tokenization initiatives, this project aims to automate and streamline fund redemptions and subscriptions to reduce costs and enhance liquidity. Swift's infrastructure supports real-time processing, presenting a transparent and efficient solution for tokenized investments. Chainlink co-founder Sergey Nazarov expressed excitement over the incorporation of off-chain payment capabilities, aimed at increasing capital flow. This pilot builds on previous efforts by UBS and SBI Digital Markets to develop a system for digital subscriptions and redemptions. Despite the promising advancements, challenges remain regarding achieving scale and widespread industry adoption, as noted by the Monetary Authority of Singapore's deputy managing director.

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