- ChainLink and UBS have launched a blockchain pilot to automate tokenized fund workflows using Swift messaging.
- The system processes fund subscriptions and redemptions on-chain by integrating Chainlink Runtime Environment with Swift’s global messaging standard.
- This approach allows financial institutions to utilize existing Swift infrastructure for digital asset transactions, reducing the need for new identity systems.
- A recent pilot addressed global processing costs of $58 billion by leveraging blockchain and AI for corporate action events with 24 top banks.
- Separately, Swift is working with ConsenSys and over 30 global banks on a blockchain-based ledger for cross-border payments.
Chainlink announced a blockchain pilot on Tuesday in partnership with UBS, enabling banks to manage digital asset workflows through their current systems. The project combines Swift messaging—a widely used interbank communication protocol—and the Chainlink Runtime Environment for automating processes related to tokenized funds.
The pilot demonstrated how banks can execute fund subscriptions and redemptions on blockchain networks using Swift messages, which employ the ISO 20022 financial messaging standard. According to company statements, this integration allows transactions to be processed directly via existing banking infrastructure and avoids the need for new security or identity management solutions.
Chainlink emphasized that this system is compatible with current tools and processes, helping banks take advantage of blockchain technology without disrupting their established workflows. “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 company stated.
This pilot builds on earlier tokenization experiments conducted during Singapore’s Project Guardian in 2024, highlighting ongoing efforts to modernize financial services. In addition, another recent Chainlink pilot, conducted with 24 leading financial institutions, focused on using blockchain and Artificial Intelligence to process and verify corporate action events—such as dividends and stock splits—across multiple languages. The goal is to produce “golden records,” or standardized datasets, and address the estimated $58 billion in annual global processing costs.
Elsewhere, Swift is developing a blockchain-based shared ledger for cross-border payments in collaboration with Consensys, the creator of MetaMask, involving more than 30 major banks.
For more information on Chainlink’s recent initiatives, visit the company announcement.
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