UBS and Chainlink's Landmark Onchain Fund Redemption

UBS has successfully executed the first on-chain redemption of a tokenized fund using Chainlink’s Digital Transfer Agent (DTA). This marks a significant advancement in integrating blockchain technology within the $100 trillion global fund industry. The transaction involved the UBS USD Money Market Investment Fund Token (uMINT) on Ethereum, with DigiFT acting as the on-chain distributor. This event emphasizes the potential of blockchain to enhance operational efficiency and product innovation in the fund sector. UBS’s Tokenize platform aims to automate critical processes like order-taking, execution, and settlement, thereby reducing operational complexity and time. The transaction follows a pilot where Chainlink connected existing banking systems to blockchains, showcasing the capabilities of Chainlink’s Cross-Chain Interoperability Protocol and Runtime Environment to facilitate fund transactions. This development illustrates the growing embrace of tokenization in finance, with UBS highlighting that it represents a pivotal moment for enhancing fund operations and the investor experience.

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