Chainlink, SWIFT, and UBS Pioneer Tokenized Fund Solution
Chainlink has collaborated with SWIFT and UBS to develop a groundbreaking system that enables banks and asset managers to process tokenized fund subscriptions and withdrawals via the same messaging infrastructure they currently use. This innovative solution has the potential to accelerate the introduction of digital assets in the global fund industry, which is valued at $100 trillion. By eliminating a critical technical barrier, this development could revolutionize the way funds are managed and processed.
The solution builds upon Chainlink, SWIFT, and UBS’s earlier cooperation in the Monetary Authority of Singapore’s Project Guardian in 2024, which tested the tokenized asset agreement using cash outside the chain. In the latest pilot, UBS Tokenize, the bank’s tokenization unit, successfully processed fund subscription and redemption requests. News sent in the ISO 20022 format by SWIFT were forwarded via Chainlink’s Runtime Environment (CRE), which triggered digital transfer agent actions using on-chain smart contracts.
Pilot with UBS – Tokenize
The pilot with UBS Tokenize demonstrates the potential of this solution to transform the global fund industry. By leveraging existing infrastructure, institutions can experiment with tokenized funds without incurring the costs and complexity of building entirely new systems. This “plug-and-play” model enables institutions to interact with blockchain networks without revising their identity or custody systems.
The ability to manage tokenized workflows directly from existing infrastructure could be a game-changer for the global wealth management sector, which is under pressure to modernize operations and reduce costs. The use of SWIFT to trigger on-chain events reduces reconciliation work, improves compliance automation, and increases transparency, according to Chainlink. Sergey Nazarov, co-founder of Chainlink, noted that this collaboration showcases how smart contracts and new technical standards can bring greater efficiency to the wealth lifecycle.
Implications for the Fund Industry
The tokenization of funds is a key focus area for financial institutions and regulatory authorities, as companies seek to improve settlement speed, alleviate operational risk, and unlock new forms of market flexibility. Progress such as the Chainlink-SWIFT integration could help move the tokenization of funds from isolated pilots to broader adoption in global capital markets. As the fund industry continues to evolve, solutions like this one will play a critical role in shaping the future of wealth management.
For more information on this groundbreaking development, please visit https://cryptoslate.com/chainlink-swift-and-ubs-succesfully-pilot-tokenized-fund-solution-to-revolutionize-100-trillion-industry/
