Swift, UBS, and Chainlink Team Up to Transform Tokenized Fund Transactions

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Global financial messaging network, Swift, UBS Asset Management, and Chainlink have launched a groundbreaking pilot program to settle tokenized fund transactions. This initiative could change the way we invest in digital assets, making transactions faster and more efficient. With over $63 trillion in the global mutual fund market at stake, this could be a changing moment for digital finance.

Swift, UBS, Chainlink: Transforming Fund Transactions

On November 5, 2024, Swift made a big announcement that they, along with UBS Asset Management and Chainlink, completed a pilot for settling tokenized fund subscriptions and redemptions. This new method allows financial institutions to use Swift’s powerful infrastructure for cash settlements of tokenized funds. 

Earlier, the Monetary Authority of Singapore (MAS) launched a pilot program to show how financial institutions can benefit from Swift’s existing systems. With this program, digital asset transactions can now settle quickly and securely with traditional fiat payment systems. 

This means over 11,500 financial institutions worldwide can efficiently manage their transactions, bringing a new level of speed and security to the world of finance.

Challenges In Traditional Fund Operations

Traditional fund operations often face several challenges. The processes for subscribing and redeeming funds can be slow and need manual steps, causing delays and higher costs. This makes it harder to move money and can lead to missed chances in the $63 trillion global mutual fund market. 

The new pilot program aims to fix these issues by enabling smooth transactions using blockchain technology, Chainlink’s platform, and Swift’s network.

Key Role of Chainlink

Chainlink’s technology played a key role in making this project work. It helps Swift coordinate transactions between different parties, making the buying and selling of fund tokens automatic. 

When investors decide to buy or sell tokens, the process happens quickly and efficiently, allowing for real-time transactions on the Swift network. This makes it easy for investors to manage their assets without worrying about delays or complications.

However, Co-founder of Chainlink Sergey Nazarov said he is excited about these new payment methods, believing they will bring more money into digital assets and make the financial system stronger.

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Chainlink Price Action

Analyzing the LINK chart, we can see a Head and Shoulders pattern forming. This is a classic bullish reversal signal, with the neckline positioned between $11.50 and $12.00. 

This pattern suggests that if LINK successfully reclaims and maintains its position above the neckline, it could experience a continued rise of about 40%.

If Chainlink manages to break above this resistance level, it could trigger a price surge of up to $15.00. Currently, LINK is trading at around $10.58, down 1% in the last 24 hours.