Chainlink has developed a new system with SWIFT and UBS with which banks and asset managers can process Tokenized Fund subscriptions and repayments via the same message infrastructure that they already use.
The solution could accelerate the acceptance of digital assets in the $ 100 trillion Global Fund industry by removing a critical technical barrier, according to the announcement of 30 September.
Pilot with UBS -Tokenize
The initiative builds on the earlier collaboration of Chainlink, Swift and UBS in the monetary authority of the Guardian van Singapore project in 2024, which tested Tokenized Activa settlement with the help of cash off-chain.
In the newest pilot, UBS Tokenize, the Tokenization Unit of the Bank, successfully processed fund subscription and repayment requests.
Messages sent in the ISO 20022 format of Swift were routed by Chainlink’s Runtime Environment (CRE), who subsequently activated the smart contractions of Onchain using Chainlink’s Digital Transfer Agent Standard.
By trusting existing fast infrastructure, institutions do not have to overhaul their identity or guardianal systems to interact with blockchain networks.
Settings can be used with the “plug-and-play” model Experiment with tokenized funds Without the costs and complexity of building completely new systems.
Implications for the fund industry
The possibility of managing Tokenized Workflows directly from Legacy infrastructure can be transforming for the global asset management sector, which is under pressure to modernize activities and save costs.
The use of Swift to activate Onchain events, reduces reconciliation work, improves the automation of compliance and increases transparency, according to Chainlink.
Co-founder Sergey Nazarov, Chainlink, said that the collaboration shows how smart contracts and new technical standards can provide the life cycle of assets more efficiency.
In the meantime, UBS demonstrates how banks can use tokenization to improve existing products and explore new distribution models.
Tokenization of funds has become a focus for financial institutions and supervisors, since companies are looking for ways to improve the settlement speed, reduce operational risk and unlocking new forms of market flexibility.
Progress such as the chain link-swift integration could help to move tokenization of isolated pilots to broader acceptance on global capital markets.
