Chainlink, Swift Advance Blockchain Integration With UBS For Tokenized Funds

Chainlink (LINK) on Tuesday unveiled a new blockchain pilot with UBS to enable financial institutions to manage their digital asset workflows directly from their existing systems using Switch messaging and the Chainlink Runtime Environment. 

LINK’s price rose 1.2% in the last 24 hours as retail sentiment on Stocktwits improved to ‘neutral’ from ‘bearish as chatter increased to ‘normal’ from ‘low’ levels of the past day. 

The pilot used Swift messages and Chainlink’s Runtime Environment (CRE) to trigger on-chain fund subscription and redemption workflows for UBS’s tokenized funds. By using ISO 20022, the global financial messaging standard adopted by Swift, the system enabled the bank to process blockchain transactions directly through its existing Swift infrastructure. This removes the need for new identity or key management systems, the company said.

The companies stated that the effort builds on the firms’ previous tokenization trials conducted under Singapore’s Project Guardian in 2024. Chainlink stated that the UBS pilot demonstrates how midstream workflows, such as fund subscriptions and redemptions, can be automated across blockchains using the same infrastructure already in place at major financial institutions. The setup enables banks to access blockchain infrastructure using tools they already utilize, such as Swift, while Chainlink’s infrastructure handles the rest.

The announcement comes just a day after the company announced that the success of another pilot aimed at streamlining $58 billion in global processing costs with 24 of the world’s largest financial institutions. This includes dividends, stock splits, and mergers. The pilot combined Chainlink’s blockchain infrastructure with AI to process and verify corporate action events across multiple languages, producing standardized datasets referred to as “golden records.”

Separately, Swift is developing a blockchain-based shared ledger for cross-border payments in partnership with Consensys, the firm behind MetaMask, with over 30 global banks. 

Read also: Bitcoin Pulls Back To $112K Ahead Of Potential US Government Shutdown

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