• SBI Digital Markets partners with UBS to streamline tokenized fund operations, enhancing efficiency in the $63 trillion mutual fund industry.

  • The new pilot uses Chainlink's technology to automate fund workflows, improving transparency and reducing costs for investors.

  • SBIDM's regulated framework will launch soon, offering structured notes backed by luxury wines and expanding tokenized securities.

Chainlink's Cross-Chain Interoperability Protocol (CCIP) has been used to successfully pilot a new venture between SBI Digital Markets (SBIDM) and UBS Asset Management. Simplifying tokenized fund operations across many blockchain networks and financial systems is the goal of this creative trial. At US$63 trillion, the mutual fund sector is positioned to improve transparency and operational efficiency with this advancement.

https://twitter.com/chainlink/status/1853428013691515389 Enhancing Cross-Border Distribution

SBI Digital Markets has renewed its participation in the Monetary Authority of Singapore’s Project Guardian pilots. This initiative includes the Fixed Income and Asset and Wealth Management pilots. 

Through these efforts, SBIDM aims to foster commercial adoption of tokenized securities. The company is actively constructing a comprehensive framework for the distribution of these securities. This framework connects regulated digital asset exchanges across multiple jurisdictions.

Winston Quek, CEO of SBIDM, emphasizes the importance of regulated frameworks. He states that their focus is on creating a seamless flow for tokenized securities. From tokenization to distribution, SBIDM has implemented workflows for effective cross-border networks. They enable both traditional and tokenized issuances, ensuring all investor needs are met.

Streamlined Operations with Smart Contracts

The pilot also showcases SBIDM's collaboration with UBS Asset Management. This partnership leverages smart contracts for automating fund subscription and redemption workflows. By adopting an interoperable architecture, SBIDM enhances transparency and reduces operational costs. This streamlined interaction benefits distributors, fund issuers, and administrators alike.

Additionally, SBIDM developed a digital transfer agent smart contract. This technology enables cross-chain communication with tokenized fund contracts. Leveraging Chainlink's CCIP, the pilot successfully demonstrated the efficiency of smart contracts. Consequently, this unlocks a fundamental shift in the operational landscape of the mutual fund industry.

SBIDM plans to launch its regulated end-to-end framework in the next two months. The first product will be a structured note backed by luxury wines, followed by offerings in intellectual property and commodities. This initiative marks a significant step towards broadening the adoption of tokenized financial instruments.

The post SBI Digital Markets and UBS Partner to Revolutionize Tokenized Funds with Chainlink appeared first on Crypto News Land.