Key Developments in Tokenized Fund Operations
UBS has successfully completed the world’s first live tokenized fund transaction. This achievement uses the Chainlink Digital Transfer Agent (DTA) technical standard, marking a significant milestone in financial technology.
UBS collaborated with its tokenization unit, UBS Tokenize, and DigiFT to process a subscription and redemption request. The transaction was part of the UBS USD Money Market Investment Fund Token (uMINT) built on Ethereum.
The integration of Chainlink’s DTA standard has streamlined fund operations, enabling automation for better efficiency and utility. This workflow covers every stage of the fund lifecycle, from order taking to data synchronization across on-chain and off-chain systems.
Mike Dargan, UBS’s Group Chief Operations and Technology Officer, emphasized that the tokenization initiative enhances operational efficiencies. He added that it also enables new possibilities for product composability, benefiting investor experience and institutional finance.
Chainlink's Role in Enhancing Tokenized Fund Operations
Chainlink’s co-founder, Sergey Nazarov, expressed excitement over the successful collaboration with UBS and DigiFT. He highlighted that the partnership sets a new benchmark for scalable, secure workflows for tokenized assets in institutional finance.
The on-chain fund distributor for uMINT, DigiFT, demonstrated how on-chain fund operations can be executed and reconciled. The use of the Chainlink DTA standard enables seamless integration with institutional custody, ensuring transparency and real-time visibility.
UBS’s tokenized fund transaction builds on previous work under Singapore’s Project Guardian. The initiative aims to explore how blockchain can improve financial processes and regulatory compliance.
Chainlink Token Market Performance
As for the Chainlink token, it is currently priced at $15.17. Over the past hour, the token saw a 1.98% increase, although it dropped by 5.09% in the last 24 hours and 17.60% over the past week.