TL;DR
- Chainlink and Swift are collaborating to simplify tokenized fund operations for institutions using existing systems.
- UBS Tokenize is participating in a pilot that connects onchain workflows with traditional banking infrastructure.
- The integration leverages Chainlink’s Runtime Environment and Swift messaging to trigger subscriptions and redemptions without requiring banks to replace legacy systems, potentially transforming fund management for a global market exceeding $100 trillion.
Chainlink has expanded its partnership with Swift to enable financial institutions to manage tokenized fund processes directly through existing systems. The new integration uses Chainlink’s Runtime Environment (CRE) alongside Swift’s ISO 20022-compliant messaging network, allowing smart contract events to be triggered without replacing legacy infrastructure or adding new identity and key management layers. This approach also opens possibilities for broader automation in fund accounting, compliance reporting, and investor communications, making workflows more efficient and transparent across multiple jurisdictions.
UBS Tokenize, the bank’s in-house tokenization unit, has become the first live participant in this system. The pilot builds on previous collaborations, including Singapore’s Project Guardian, and demonstrates how traditional financial institutions can access blockchain workflows without significant operational disruption. Chainlink co-founder Sergey Nazarov highlighted that the pilot shows how smart contracts and new technical standards can enable onchain management of tokenized assets and facilitate lifecycle composability for financial products.
Swift And Chainlink Unlock Blockchain Access For Institutions
The solution integrates the CRE with Swift messaging to automate subscription and redemption workflows for tokenized funds. Swift’s messaging network, already used by more than 11,000 institutions globally, provides a secure and compliant backbone, ensuring banks can adopt blockchain capabilities while maintaining regulatory standards. Chainlink positions this as a plug-and-play solution for the $100 trillion-plus global fund industry, allowing traditional banks to participate in tokenized asset markets efficiently. Moreover, the integration could reduce manual errors, accelerate settlement times, and enhance transparency for regulators and investors alike, reinforcing the trust in emerging digital finance systems.
AI And Cross-Border Innovation Expand The Use Case
This announcement comes shortly after Chainlink completed the second phase of its AI-driven pilot for corporate actions processing. That initiative involved generating ISO 20022-compliant records using multiple large language models, including OpenAI’s GPT, Google’s Gemini, and Anthropic’s Claude. Swift’s network transmitted the structured data, supported by major financial institutions such as DTCC, Euroclear, UBS, DBS, and BNP Paribas.
Meanwhile, Swift continues its blockchain experiments for cross-border payments with Consensys, involving over 30 global banks. The effort aims to create interoperable onchain financial infrastructure, complementing Chainlink’s work and highlighting how traditional banks can leverage decentralized technologies without abandoning existing systems.
