UBS Tests Onchain Fund Redemptions in Live Chainlink Trial

UBS has successfully carried out the first live transaction for a tokenized money market fund. This innovative process utilized Chainlink’s infrastructure to handle subscription and redemption orders directly on the Ethereum blockchain.

Key Takeaways

UBS has successfully executed the first live transaction for a tokenized money market fund using Chainlink’s technology.
The transaction involved the UBS USD Money Market Fund (uMINT) and was conducted entirely on the Ethereum blockchain.
Chainlink's Digital Transfer Agent standard was utilized for streamlined operations and compliance.
The pilot is part of UBS Tokenize, a service aimed at the tokenization of real-world financial assets.
This advancement helps UBS maintain its leadership in institutional adoption of digital assets, managing $6.9 trillion in invested assets.

UBS tests tokenized money market fund transaction with Chainlink.

Exploring a New Model for Tokenized Funds

On November 4, UBS, the Swiss banking giant, announced through a press release that it teamed up with Chainlink, an oracle network, and on-chain exchange DigiFT to conclude the first live subscription and redemption process of its tokenized UBS USD Money Market Fund (known as uMINT).

The UBS team highlighted that this transaction employed Chainlink’s Digital Transfer Agent (DTA) standard on the Ethereum blockchain, establishing a comprehensive automation workflow that transitions a fund’s core operations onto the blockchain for the very first time in a real-world setting.

UBS stated that this transaction showcases how tokenized fund operations can be conducted entirely on-chain while adhering to high institutional standards for compliance and security. It encompassed essential phases of the fund lifecycle, including taking orders, executing trades, settling transactions, and critically, synchronizing data between on-chain and off-chain systems.

By incorporating Chainlink’s DTA standard, the process facilitated a smooth integration between UBS’s traditional internal systems and the Ethereum blockchain, with DigiFT serving as the authorized on-chain distributor to complete the transaction.

This test is a significant part of UBS Tokenize, the bank’s in-house service that focuses on creating blockchain-based financial products. UBS Tokenize aims to tokenize real-world assets, such as bonds, funds, and structured products, overseeing the asset lifecycle from origination and issuance through to distribution and custody.

This initiative represents a strategic move for UBS, a leading global wealth manager with $6.9 trillion in assets under management, as it seeks to strengthen its position in the rapidly evolving landscape of institutional digital asset adoption.