Chainlink’s CRE enables Swift-ISO 20022 messages to trigger onchain tokenized fund subscriptions/redemptions in UBS pilot, revolutionizing $100T industry efficiency.
Builds on Project Guardian success, automating atomic cash-token settlements without legacy system overhauls for seamless TradFi-blockchain integration.
Sergey Nazarov hails “landmark” smart contract innovation, unlocking liquidity and composability for global funds via Chainlink’s DTA standard.
In a masterstroke for tokenized real-world assets (RWA), Chainlink has unveiled a groundbreaking pilot with UBS Tokenize and Swift, seamlessly bridging legacy banking rails to blockchain for the $100+ trillion global fund industry. Announced yesterday in Frankfurt, this “plug-and-play” solution lets financial giants trigger onchain fund subscriptions and redemptions using familiar ISO 20022 Swift messages—no overhauls required.
At its core is Chainlink’s Runtime Environment (CRE), which intercepts Swift signals and activates smart contracts via the Chainlink Digital Transfer Agent (DTA) standard. In the live UBS pilot, tokenized fund workflows fired off flawlessly: messages from UBS’s systems routed through CRE, minting or burning fund tokens in seconds. This eliminates the clunky, days-long settlements plaguing the $100 trillion sector, slashing costs, boosting liquidity, and unlocking composability for DeFi-TradFi hybrids.
Chainlink Co-Founder Sergey Nazarov called it a “landmark innovation,” emphasizing how Swift’s standards paired with UBS’s tokenized designs empower transfer agents to orchestrate onchain lifecycles. “We’re showing smart contracts can supercharge existing infrastructure,” Nazarov said, spotlighting the pilot’s role in scaling digital assets without regulatory friction.This isn’t Chainlink’s first rodeo with these power players. It builds on 2024’s Project Guardian under Singapore’s MAS, where Swift, UBS Asset Management, and Chainlink settled tokenized funds with off-chain fiat via Swift rails—proving atomic delivery of cash and tokens. That effort, alongside pilots with SBI Digital Markets, automated fund ops end-to-end. Now, with CRE as the universal adapter, banks like UBS can dip into blockchain’s speed and risk management perks while clinging to their Swift lifelines, used by over 11,000 institutions worldwide.
The implications? A floodgate for RWAs. As tokenized funds balloon—BlackRock’s BUIDL already hit $500M—this setup positions Chainlink as the indispensable oracle layer, securing trillions in value across DeFi protocols like Aave and Lido. Critics once dismissed oracles as plumbing; today, they’re the pipes funneling TradFi’s trillions onchain. With Euroclear, DTCC, and BNP Paribas in the mix from related pilots, expect a domino effect: faster redemptions, programmable yields, and 24/7 markets. Yet, hurdles loom—regulatory silos and interoperability kinks persist. Still, as Nazarov quipped, “This is how we future-proof finance.” For LINK holders, it’s validation: Chainlink isn’t just data feeds; it’s the on-ramp to a tokenized tomorrow.
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Nikolai Carter
