Chainlink Integrates Tokenized Funds with UBS via Swift

Chainlink has launched a solution that will enable banks to interact with tokenized investment funds. This solution makes it possible to carry out transactions using the Swift messaging system, one of the cornerstones of traditional finance.

The solution in question performs subscription and redemption operations for tokenized funds through Chainlink's Runtime Environment (CRE). This allows financial institutions to access blockchain infrastructure using their existing tools.

This pilot application aims to demonstrate the advantages of blockchain technology in the global investment fund industry, which exceeds $100 trillion. It also covers previous work with Project Guardian, led by the Monetary Authority of Singapore.

In a pilot study with UBS, Chainlink developed a technical process that handles subscription and redemption transactions for tokenized funds using ISO 20022 messages, the international financial messaging standard. Blockchain workflows were directly triggered from UBS's existing systems after the CRE received Swift messages. Subscriptions or redemptions were then managed by the Chainlink Digital Transfer Agency.

This structural arrangement allows banks to access blockchain infrastructure with tools they already use, such as Swift, while Chainlink's infrastructure handles the remaining operations. The pilot application followed a separate pilot project with 24 global banks, conducted together with financial infrastructure providers such as DTCC and Euroclear. In this project, Chainlink's tools and AI were used to extract and standardize data from corporate action announcements. This process shows that the industry faces a significant annual cost of $58 billion.