- Chainlink integrated its Runtime Environment with Swift messaging, allowing banks to trigger blockchain transactions using ISO 20022 messages.
- UBS Tokenize piloted the solution under Singapore’s Project Guardian, processing fund subscriptions and redemptions without new infrastructure.
- The model, described as “plug-and-play,” aims to cut costs, reduce intermediaries, and expand tokenisation across the US$100T (AU$151.6T) fund industry.
A new integration between Chainlink and Swift has enabled UBS Asset Management to trial blockchain-based fund transactions without leaving the existing banking infrastructure. The pilot linked Chainlink’s Runtime Environment with Swift’s ISO 20022 messaging system, enabling banks to trigger onchain events using the same rails they already employ for financial communications.
The pilot formed part of earlier work with the Monetary Authority of Singapore under Project Guardian, which initially explored tokenised asset settlement. In this round, UBS Tokenize processed fund subscription and redemption workflows by sending ISO 20022 messages through Swift, which were then routed into Chainlink’s execution layer to activate blockchain transactions.
Normally, such processes rely on a long chain of intermediaries, each introducing additional steps and reconciliations. The new solution allows banks to bypass those layers, operating tokenised funds directly through familiar systems while avoiding expensive infrastructure upgrades.
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A Faster Settlement Path
The design has been described as a “plug-and-play” model that connects legacy financial systems to blockchain environments without requiring new custody or identity frameworks. This approach aims to ease adoption across the global asset management industry, valued at more than US$100 trillion (AU$151.6 trillion).
Chainlink emphasised that this interoperability reduces friction and increases automation for financial institutions seeking to modernise operations. Sergey Nazarov, Chainlink’s co-founder, said the collaboration shows how smart contracts and new technical standards can deliver efficiency gains across the asset lifecycle.
UBS’s participation underlines the growing role of tokenisation in mainstream finance, as institutions look to accelerate settlement times and cut operational costs. The success of this pilot demonstrates how established networks like Swift could serve as a bridge between traditional financial systems and blockchain-based infrastructure.
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