Chainlink, UBS Enable Tokenized Funds Workflow Using Swift System
Chainlink has developed a process enabling banks to engage with tokenized investment funds via the Swift interbank messaging system, foundational to traditional finance.
- In collaboration with UBS, Chainlink's Runtime Environment (CRE) managed fund subscriptions and redemptions using ISO 20022 messages, the international standard for financial messaging.
- The blockchain processes initiated directly from UBS's systems after receiving Swift messages, activating transactions in the Chainlink Digital Transfer Agent.
- This setup allows banks to utilize existing tools like Swift to access blockchain infrastructure, with Chainlink managing the technical aspects.
- The pilot expands on Project Guardian, a tokenization initiative by Singapore's central bank, enhancing interoperability to enable institutions to use Swift for on-chain events.
- This development follows another Chainlink pilot involving 24 global banks and infrastructure providers, aimed at streamlining corporate action data management, a process costing the industry $58 billion annually.