UBS, Swift, and Chainlink Launch Blockchain Pilot for Tokenized Funds
UBS, Taylor Swift, and Chainlink have joined forces to launch a pilot project enabling financial institutions to conduct tokenized fund processes directly from their existing systems. This collaboration aims to integrate blockchain technology with traditional financial infrastructure, demonstrating how large banks can test blockchain-powered workflows on live infrastructure today.
The pilot project leverages Swift's financial messaging standards and Chainlink's Cross-Chain Interoperability Protocol and Runtime Environment (CRE). UBS Tokenize, a subsidiary of UBS, is leading the initiative, which allows banks to conduct fund subscription and redemption workflows on blockchain. This integration showcases how existing financial infrastructure can be linked with decentralized systems, creating operational efficiencies without forcing institutions to overhaul their current setups.
In parallel, Swift is collaborating with Consensys to explore a blockchain-based shared ledger for cross-border payments. Major banks such as HSBC, BNP Paribas, and Bank of America are involved in this exploration. Additionally, Chainlink has made progress on an AI-driven corporate actions project, testing how large language models can convert corporate event data into structured, ISO 20022-compliant records sent via Swift. This project involves major financial institutions such as DTCC, Euroclear, DBS, BNP Paribas, and UBS.
The global fund industry, valued at over $100 trillion, stands to benefit from this pilot's plug-and-play model that connects existing infrastructure with blockchain capabilities. Institutions can now experiment with tokenized assets without significant upfront investment. Chainlink serves as the middleware, making interoperability between traditional systems and the emerging tokenized economy possible. This collaboration between Swift, Chainlink, and UBS demonstrates a significant step towards a more efficient and secure future for the global finance industry.
