UBS has completed its first live transaction using Chainlink’s Digital Transfer Agent (DTA) technical standard. It conducted an on-chain subscription and redemption of its uMint tokenized money market fund using the Chainlink smart contracts, with its partner DigiFT acting as the on-chain distributor.
The DTA aims to automate the workflow throughout the fund lifecycle, synchronizing on-chain activity with off-chain systems. UBS is the first to go live with Chainlink’s DTA offering, which integrates with other parts of the Chainlink stack, including cross chain interoperability and compliance.
“This transaction represents a key milestone in how smart contract-based technologies and technical standards enhance fund operations and the investor experience,” said Mike Dargan, UBS Group Chief Operations and Technology Officer.
While Chainlink has relationships with significant incumbents such as Swift and the DTCC, Chainlink is by no means the first to automate on-chain fund workflows. Multiple fund distribution firms have been working with these technologies for years, including Allfunds, Calastone and FundsDLT. KAIO (formerly Libre Capital), a Nomura-backed startup, has developed an on chain fund protocol, which uses smart contracts to adddress the legal and policy requirements to enable the automation of fund distribution through to wealth managers.
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