tl;dr
Chainlink, Swift, and UBS have developed a groundbreaking system to simplify tokenized fund transactions, using existing infrastructure to cut costs and enhance efficiency in the global finance sector.
**Chainlink, Swift, and UBS Unveil Groundbreaking System to Streamline Tokenized Fund Transactions**
In a significant step toward modernizing the global financial infrastructure, Chainlink, the leading decentralized oracle network, has partnered with Swift and UBS to develop a revolutionary system that enables banks and asset managers to process tokenized fund subscriptions and redemptions using their existing messaging networks. This collaboration, announced on September 30, aims to accelerate the adoption of digital assets in the $100 trillion global fund industry by eliminating a critical technical barrier.
### A Seamless Integration for Tokenized Finance
The initiative builds on a prior collaboration between Chainlink, Swift, and UBS during the Monetary Authority of Singapore’s Project Guardian in 2024, which explored tokenized asset settlement using off-chain cash. The latest pilot, conducted through UBS Tokenize—the bank’s dedicated tokenization unit—successfully processed fund subscription and redemption requests.
The system leverages Swift’s ISO 20022 messaging format, which is widely used by financial institutions, to route transactions through Chainlink’s Runtime Environment (CRE). This infrastructure then triggers on-chain smart contract actions via Chainlink’s Digital Transfer Agent (DTA) standard. By integrating with existing Swift systems, institutions can avoid the need to overhaul their identity or custody frameworks, enabling a “plug-and-play” approach to tokenized fund management.
### Reducing Complexity, Enhancing Efficiency
This innovation addresses a major pain point for financial institutions: the high cost and complexity of building new systems to interact with blockchain networks. By utilizing legacy infrastructure, banks can experiment with tokenized funds without disrupting their current operations.
According to Chainlink, the solution reduces reconciliation efforts, enhances compliance automation, and increases transparency. “This collaboration demonstrates how smart contracts and new technical standards can bring greater efficiency to the asset lifecycle,” said Sergey Nazarov, co-founder of Chainlink.
UBS, meanwhile, is positioning itself as a pioneer in leveraging tokenization to innovate its product offerings and explore new distribution models. The bank’s pilot highlights how traditional financial institutions can integrate blockchain technology to meet evolving market demands.
### Implications for the Global Fund Industry
The ability to manage tokenized workflows through legacy systems could transform the asset management sector, which faces mounting pressure to modernize and cut costs. Tokenization offers benefits such as faster settlement times, reduced operational risks, and enhanced market flexibility—making it a focal point for regulators and financial institutions alike.
The Chainlink-Swift integration marks a pivotal shift from isolated pilots to broader adoption of tokenized assets across global capital markets. By bridging traditional finance with blockchain, the partnership paves the way for a more efficient, transparent, and scalable financial ecosystem.
As the industry continues to evolve, this collaboration underscores the potential of interoperability solutions to unlock the full promise of digital assets. With institutions like UBS and technological innovators like Chainlink leading the charge, the path to widespread tokenization seems increasingly viable.
**Conclusion**
The Chainlink-Swift-UBS alliance represents a transformative milestone in the convergence of traditional finance and blockchain technology. By simplifying access to tokenized funds and reducing technical friction, the initiative not only addresses current industry challenges but also sets the stage for a future where digital assets are seamlessly integrated into the global financial system. As more institutions adopt such solutions, the $100 trillion fund industry may soon witness a paradigm shift toward greater efficiency, innovation, and inclusivity.