Chainlink has developed a brand new system with Swift and UBS that allows banks and asset managers to course of tokenized fund subscriptions and redemptions by way of the identical messaging infrastructure they already make the most of.
The answer may speed up digital asset adoption within the $100 trillion international fund business by eradicating a crucial technical barrier, in keeping with the Sept. 30 announcement.
Pilot with UBS Tokenize
The initiative builds on Chainlink, Swift, and UBS’ earlier collaboration within the Financial Authority of Singapore’s Venture Guardian in 2024, which examined tokenized asset settlement utilizing off-chain money.
Within the newest pilot, UBS Tokenize, the financial institution’s tokenization unit, efficiently processed fund subscription and redemption requests.
Messages despatched in Swift’s ISO 20022 format have been routed by way of Chainlink’s Runtime Atmosphere (CRE), which then triggered onchain sensible contract actions utilizing Chainlink’s Digital Switch Agent commonplace.
By counting on present Swift infrastructure, establishments don’t must overhaul their identification or custody methods to work together with blockchain networks.
The “plug-and-play” mannequin permits establishments to experiment with tokenized funds with out the fee and complexity of constructing fully new methods.
Implications for the fund business
The power to handle tokenized workflows immediately from legacy infrastructure might be transformative for the worldwide asset administration sector, which is below strain to modernize operations and lower prices.
Utilizing Swift to set off onchain occasions reduces reconciliation work, enhances compliance automation, and will increase transparency, in keeping with Chainlink.
Chainlink co-founder Sergey Nazarov mentioned the collaboration demonstrates how sensible contracts and new technical requirements can deliver better effectivity to the asset lifecycle.
In the meantime, UBS is demonstrating how banks can make the most of tokenization to reinforce present merchandise and discover new distribution fashions.
Tokenization of funds has develop into a spotlight for monetary establishments and regulators as corporations search methods to reinforce settlement velocity, mitigate operational threat, and unlock new types of market flexibility.
Advances just like the Chainlink-Swift integration may assist transfer tokenization from remoted pilots to broader adoption throughout international capital markets.
