UBS stated it accomplished the primary on-chain redemption of a tokenized fund utilizing Chainlink’s Digital Switch Agent (DTA) in a reside transaction that underscores how blockchain infrastructure is beginning to interface with the $100 trillion international fund business.
The transaction concerned the tokenized cash market fund UBS USD Cash Market Funding Fund Token (uMINT) constructed on Ethereum.
DigiFT served because the onchain distributor, settling the redemption utilizing Chainlink’s DTA normal. UBS’ inner methods initiated the method, which Chainlink’s infrastructure then executed, based on a press launch shared with CoinDesk.
“This transaction represents a key milestone in how good contract-based applied sciences and technical requirements improve fund operations and the investor expertise,” Mike Dargan, UBS’ group chief working and expertise officer, stated.
“Because the business continues to embrace tokenized finance, this achievement illustrates how these improvements drive better operational efficiencies and new potentialities for product composability.”
The transaction is a part of a broader initiative from UBS Tokenize, the financial institution’s in-house platform for blockchain-based monetary merchandise.
By automating key features like order-taking, execution and settlement throughout digital and conventional methods, the expertise goals to chop operational complexity and processing time for the $100 trillion international fund business.
It follows a current pilot the place Chainlink linked current financial institution methods to blockchains through Swift, the monetary messaging community.
That setup used Chainlink’s Cross-Chain Interoperability Protocol and Runtime Surroundings to course of fund transactions utilizing ISO 20022 messages, letting banks entry blockchain rails with out overhauling legacy infrastructure.