TLDR
- Chainlink and Swift unlock blockchain for banks via ISO 20022 messaging.
- CRE lets banks run tokenized workflows without system overhauls.
- UBS pilot confirms onchain fund flows via familiar Swift messages.
- Chainlink-Swift bridge brings blockchain to $100T fund market.
- Tokenized assets go mainstream with Chainlink’s Swift integration.
Chainlink has launched a new system with Swift that allows financial institutions to manage tokenized fund processes using existing infrastructure. The solution enables banks to trigger onchain events using ISO 20022 messages without changing legacy systems. This collaboration removes technical barriers, unlocking scalable blockchain integration for global capital markets.
The system uses the Chainlink Runtime Environment (CRE) to interpret ISO 20022-compliant Swift messages and initiate blockchain-based smart contract actions. As a result, institutions can perform tokenized fund subscriptions and redemptions using workflows they already operate. This capability streamlines access to blockchain-based digital asset processing while ensuring compliance and maintaining operational continuity.
Chainlink’s new solution builds upon its past collaboration with UBS and the Monetary Authority of Singapore’s Project Guardian. The earlier pilot demonstrated tokenized asset operations using Swift messages and laid the foundation for the new development. Now, the CRE layer enhances the functionality by enabling broader onchain event triggers from traditional messaging systems.
UBS Pilot Confirms Technical Viability of Tokenized Workflows
UBS’s in-house unit, UBS Tokenize, led the first operational test of the CRE-powered system. The pilot successfully initiated tokenized fund subscriptions and redemptions through Swift, processed via smart contracts governed by Chainlink’s Digital Transfer Agent (DTA) standard. UBS confirmed that CRE accurately received Swift instructions and securely activated onchain workflows.
This validation confirms that financial institutions can operate blockchain-based asset transactions through Swift without additional integration burdens. The approach uses familiar messaging protocols, bypassing the need for new identity systems or blockchain key management. UBS’s role proved that tokenized financial products can operate within regulated systems at scale.
The UBS pilot showcased how composable smart contract frameworks can power more dynamic financial products. Tokenized fund lifecycles can now be managed entirely onchain while remaining accessible to institutions using existing infrastructure. This represents a significant advance in the adoption of digital finance solutions across traditional markets.
Chainlink and Swift Aim to Modernize the $100 Trillion Fund Industry
The collaboration positions the Chainlink-Swift system as a plug-and-play solution for the global fund management sector. Institutions can unlock the efficiency, speed, and transparency of blockchain without infrastructure overhauls. This lowers adoption friction and encourages industry-wide participation in tokenized asset operations.
More than 11,000 institutions in 200+ countries already rely on Swift’s network, making it a strategic pathway for introducing blockchain automation. The use of ISO 20022 messaging ensures interoperability, auditability, and compliance with regulatory standards. With CRE, Swift becomes a gateway to programmable finance and smart contract execution.
Chainlink recently expanded the system’s capabilities by testing AI-generated Swift messages for corporate actions using large language models. This adds further use cases and reinforces the flexibility of the core CRE infrastructure. Both Chainlink and Swift continue to explore blockchain-led modernization of financial systems through strategic industry pilots.
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