KEY TAKEAWAYS
- Chainlink is pivotal in advancing tokenization and on-chain finance through its role in Singapore’s Project Guardian.
- Swift, UBS, and Chainlink have successfully integrated blockchain technology to automate fund transactions, enhancing efficiency in the global mutual fund market.
- ADDX, ANZ, and Chainlink’s collaboration enables secure, privacy-focused cross-border transactions using tokenized commercial paper.
- Chainlink’s infrastructure supports interoperability and compliance, crucial for blockchain adoption in financial markets.
Chainlink is playing a pivotal role in the adoption of tokenization and on-chain finance by major global institutions. As part of this transformation, Chainlink is instrumental in three significant capital market solutions under the Monetary Authority of Singapore’s (MAS) Project Guardian. This initiative is recognized for its progressive approach to integrating blockchain technology within financial markets.
Project Guardian, a collaborative effort involving policymakers and leading financial institutions, aims to demonstrate the transformative impact of tokenization and smart contracts on financial markets. Chainlink’s involvement focuses on two solutions that streamline traditional fund operations, addressing inefficiencies such as manual interventions and delayed settlements in the $63 trillion global mutual fund market. The third solution ensures confidentiality in tokenized asset transactions using the Cross-Chain Interoperability Protocol (CCIP) network.
Swift, UBS, and Chainlink Collaborate on Tokenized Assets
Swift, UBS Asset Management, and Chainlink have successfully settled tokenized fund subscriptions and redemptions via the Swift network. This initiative allows digital asset transactions to settle off-chain in fiat currency, leveraging an established payment system used by over 11,500 financial institutions globally. This collaboration demonstrates how financial institutions can use blockchain technology and the Chainlink platform to automate the fund redemption and subscription process.
The project builds on previous efforts by UBS Asset Management and SBI Digital Markets, which created a digital subscription and redemption system for tokenized funds using Swift’s payment rails. This system enables secure and scalable connections to multiple blockchain types, orchestrating interactions necessary for tokenized investment funds to mint or burn tokens automatically.
Privacy-Enabled Cross-Chain Transactions with ADDX and ANZ
ADDX, in collaboration with ANZ and Chainlink, has introduced a solution for the tokenized commercial paper lifecycle in cross-border transactions. This initiative uses ADDX’s investment platform, ANZ’s Digital Asset Services, and Chainlink’s CCIP, including its Private Transactions capability. The solution showcases how regulated financial entities can tokenize and execute digital asset transactions within existing systems while maintaining regulatory compliance.
The project demonstrates the ability of an Australian investor to purchase and redeem tokenized commercial paper issued on a Singaporean platform. Chainlink CCIP facilitates transaction settlement across private blockchains, ensuring confidentiality through its Private Transactions feature, which protects sensitive data from third-party access.
Chainlink’s infrastructure is crucial for Project Guardian applications, enabling interoperability between existing financial systems and various blockchains. This capability supports institutions in meeting confidentiality, compliance, and security requirements, paving the way for production-level blockchain use cases in banking and capital markets.
For more details on Chainlink’s involvement in Project Guardian, visit the official announcement here.
Disclaimer: The views expressed in this article are those of the authors and do not necessarily reflect the official policy of CoinsHolder. Content, including that generated with the help of AI, is for informational purposes only and is not intended as legal, financial, or professional advice. Readers should do their research before taking any actions related to the company and carry full responsibility for their decisions.
