Chainlink has developed a new system with Swift and UBS that enables banks and asset managers to process tokenized fund subscriptions and redemptions through the same messaging infrastructure they already utilize.
The solution could accelerate digital asset adoption in the $100 trillion global fund industry by removing a critical technical barrier, according to the Sept. 30 announcement.
Pilot with UBS Tokenize
The initiative builds on Chainlink, Swift, and UBS’ earlier collaboration in the Monetary Authority of Singapore’s Project Guardian in 2024, which tested tokenized asset settlement using off-chain cash.
In the latest pilot, UBS Tokenize, the bank’s tokenization unit, successfully processed fund subscription and redemption requests.
Messages sent in Swift’s ISO 20022 format were routed through Chainlink’s Runtime Environment (CRE), which then triggered onchain smart contract actions using Chainlink’s Digital Transfer Agent standard.
By relying on existing Swift infrastructure, institutions do not need to overhaul their identity or custody systems to interact with blockchain networks.
The “plug-and-play” model allows institutions to experiment with tokenized funds without the cost and complexity of building entirely new systems.
Implications for the fund industry
The ability to manage tokenized workflows directly from legacy infrastructure could be transformative for the global asset management sector, which is under pressure to modernize operations and cut costs.
Using Swift to trigger onchain events reduces reconciliation work, enhances compliance automation, and increases transparency, according to Chainlink.
Chainlink co-founder Sergey Nazarov said the collaboration demonstrates how smart contracts and new technical standards can bring greater efficiency to the asset lifecycle.
Meanwhile, UBS is demonstrating how banks can utilize tokenization to enhance existing products and explore new distribution models.
Tokenization of funds has become a focus for financial institutions and regulators as firms seek ways to enhance settlement speed, mitigate operational risk, and unlock new forms of market flexibility.
Advances like the Chainlink-Swift integration could help move tokenization from isolated pilots to broader adoption across global capital markets.
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