UBS Asset Management has partnered with Chainlink ($22) and Swift in a groundbreaking pilot to test blockchain-based fund transactions, seamlessly integrated with existing banking systems. By combining Chainlink’s blockchain technology with Swift’s ISO 20022 messaging standard, banks can initiate blockchain activity through familiar processes, paving the way for faster and more efficient operations without overhauling legacy infrastructure.
The pilot, part of Singapore’s Project Guardian led by the Monetary Authority of Singapore, enabled UBS Tokenize to successfully execute fund subscriptions and redemptions. Using ISO 20022 messages via Swift, these were automatically converted into blockchain transactions through Chainlink, bypassing traditional intermediaries and streamlining settlement.
Chainlink describes the model as “plug-and-play,” designed to connect traditional financial systems with blockchain environments. This interoperability reduces friction, enhances automation, and offers a practical route toward broader adoption of blockchain in the $100 trillion asset management industry.
Sergey Nazarov, Chainlink’s co-founder, emphasized that the initiative demonstrates the efficiencies smart contracts and evolving standards can bring across the entire asset management lifecycle. UBS’s active role highlights the growing interest in tokenization to cut settlement times and costs, showing how institutions can bridge legacy infrastructure with blockchain innovation.
Looking ahead, this collaboration signals a roadmap for traditional financial systems and blockchain to work in harmony, potentially inspiring more institutions to adopt similar solutions and making the transition to blockchain both smoother and more accessible.