SBI Digital Markets, UBS Asset Management, and Chainlink have made a significant breakthrough in the world of tokenized funds, completing a pilot program that showcases the use of smart contracts to manage these funds. This development has far-reaching implications for the asset management industry, which currently manages over $132 trillion in assets.
The solution, which leverages Chainlink's infrastructure, enables users to automate their tokenized fund management processes, unlocking the full potential of blockchain technology for this massive market. With the current total real-world assets on-chain representing a market of around $13.2 billion, this development is poised to play a crucial role in the growth and adoption of tokenized funds.
According to Winston Quek, chief executive officer at SBI Digital Markets, "This new way of launching fund structures and administering them via smart contracts empowers both fund managers and their service providers to deliver new on-chain financial products and lower operational costs to investors, both things they are actively looking for." This statement highlights the potential of this solution to transform the asset management industry, making it more efficient and cost-effective.
The pilot program demonstrated how fund managers can leverage smart contracts and Chainlink's Cross-Chain Interoperability Protocol to efficiently scale their products on-chain and across distributors. The Digital Transfer Agent smart contract model, a novel fund administration system that utilizes multiple Chainlink oracle networks, was successfully deployed by SBI's custodian and fund distributor to enable multi-chain subscriptions and redemptions.
This development follows a partnership between Swift, UBS Asset Management, and Chainlink aimed at bridging tokenized assets with legacy payment systems. UBS also recently unveiled a pilot for cross-border payments called "UBS Digital Cash". These developments demonstrate the growing interest in tokenized funds and the potential for blockchain technology to transform the asset management industry.
Predictions:
* Tokenized funds will become increasingly popular in the coming years, driven by the growing demand for efficient and cost-effective investment solutions.
* Blockchain technology will play a crucial role in the growth and adoption of tokenized funds, enabling the creation of new on-chain financial products and reducing operational costs for investors.
* The partnership between SBI Digital Markets, UBS Asset Management, and Chainlink will serve as a model for future collaborations in the tokenized funds space, driving innovation and growth in the industry.
* The use of smart contracts and oracle networks will become more widespread in the asset management industry, enabling the creation of more efficient and transparent investment solutions.
* The total real-world assets on-chain will continue to grow, driven by the increasing adoption of tokenized funds and other blockchain-based investment solutions.
