Chainlink Deepens Partnership with Swift to Improve Tokenized Funds

Key highlights:

Chainlink and Swift have developed a new system allowing institutions to manage tokenized funds via existing Swift infrastructure.
The collaboration successfully piloted tokenized fund transactions with UBS using Chainlink’s Runtime Environment and Swift messages.
The integration aims to simplify blockchain adoption for the $100 trillion global fund industry.

Chainlink has partnered with interbank messaging giant Swift to launch a new integration that enables financial institutions to manage tokenized fund processes directly from their existing systems. This collaboration leverages Chainlink’s Runtime Environment (CRE) and Swift’s ISO 20022-compliant messaging network to trigger onchain events, such as fund subscriptions and redemptions, without requiring infrastructure overhauls.

UBS pilot showcases blockchain connectivity via Swift

The solution was tested in a pilot program with UBS Tokenize, the tokenization unit of Swiss bank UBS. During the trial, ISO 20022 Swift messages initiated smart contract operations on the Chainlink Digital Transfer Agent (DTA), effectively linking traditional financial messaging with blockchain-based fund management. This builds on previous efforts under the Monetary Authority of Singapore’s Project Guardian, which first explored tokenized asset settlement.

By using CRE as a middleware layer, financial institutions can interact with tokenized assets through Swift, the same infrastructure they have relied on for decades. This plug-and-play model eliminates the need for new identity systems or backend overhauls, significantly reducing the friction typically associated with blockchain integration. Chainlink Co-Founder Sergey Nazarov said:

Broader implications for the global fund industry

Chainlink, a decentralized oracle network, is positioning this integration as a major unlock for the $100 trillion-plus global fund industry. The system enables institutions to benefit from blockchain’s speed, efficiency, and transparency while preserving their established operational frameworks.

The announcement follows a separate initiative involving Chainlink, Swift, and major institutions such as DTCC, Euroclear, and BNP Paribas. That pilot used CRE and Swift to process corporate actions via AI-generated ISO 20022 messages, addressing a costly inefficiency estimated at $58 billion annually.