UBS has executed its first live tokenised fund transaction leveraging the Chainlink Digital Transfer Agent (DTA) technical standard.
The completion marks the first on-chain subscription and redemption of its UBS USD Money Market Investment Fund Token, a money market fund built on Ethereum.
“As the industry continues to embrace tokenised finance, this achievement illustrates how these innovations drive greater operational efficiencies and new possibilities for product composability,” said Mike Dargan, group chief operations and technology officer at UBS.
“Through our UBS Tokenise initiative, we are committed to fostering innovation and applying our deep expertise to support the development of digital strategies and products that meet our clients’ evolving needs.”
In the live transaction, DigiFT functioned as the on-chain fund distributor, leveraging the DTA standard to successfully request and process a subscription and redemption order.
According to the firm, this new end-to-end tokenised fund workflow can cover every stage of the fund lifecycle, including order taking, execution, settlement, and data synchronisation across all on-chain and off-chain systems.
“This major milestone demonstrates how traditional finance can transition into on-chain environments with the reliability and efficiency the traditional industry requires,” said Sergey Nazarov, co-founder of Chainlink.
“As one of the most significant financial institutions worldwide, UBS is now leveraging Chainlink to expand its digital asset capabilities while maintaining the highest levels of regulatory and operational standards.”
