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.
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 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.
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.
