Breaking Barriers: Chainlink and SWIFT Join Forces with UBS to Revolutionize Fund Tokenization Through Groundbreaking Integration

Chainlink and SWIFT Partner with UBS to Streamline Fund Tokenization

In a significant move bridging traditional finance with blockchain technology, Chainlink (LINK) has announced a new collaboration with SWIFT, the global leader in interbank messaging and financial transactions. This partnership aims to facilitate the management of tokenized funds through a technical solution that combines SWIFT's established financial systems with Chainlink's decentralized oracle network.

On Tuesday, September 30, 2025, Chainlink revealed this innovative technical solution that enables financial institutions to "manage digital asset workflows directly from their existing systems, using SWIFT messaging and the Chainlink Runtime Environment (CRE)."

How the Integration Works

The system leverages SWIFT financial messaging protocols and Chainlink's CRE to trigger smart contract events that comply with Chainlink's Digital Transfer Agent (DTA) technical standard. This integration allows traditional financial institutions to interact with blockchain-based tokenized assets without completely overhauling their existing infrastructure.

UBS Tokenize, the Swiss bank's specialized tokenization unit, successfully tested this solution as the first use case. According to Chainlink's press release: "Subscriptions and redemptions for a UBS tokenized fund smart contract were triggered using ISO 20022 messages via the CRE [from Chainlink] and SWIFT infrastructure."

Building on Previous Collaborations

This collaboration isn't starting from scratch. The technical solution builds upon previous work between Chainlink, SWIFT, and UBS in the context of Singapore Monetary Authority's (MAS) Project Guardian at the end of 2024. That project had already established foundational connections between these entities in the realm of tokenized assets.

With this new solution, institutions can "leverage the advantages of blockchain technologies in terms of speed, efficiency, and composability," as noted in Chainlink's announcement.

"I am very excited about this historic innovation we've achieved by leveraging Swift standards and UBS's tokenized asset design, as we show how using smart contracts and new technical standards can enable transfer agents to manage tokenized asset workflows on-chain."

Sergey Nazarov, Co-founder of Chainlink

Broader Implications for Financial Tokenization

This partnership represents more than just a technical achievement—it signals a growing convergence between traditional finance (TradFi) and decentralized finance (DeFi). By creating interoperable systems that allow established financial institutions to interact with blockchain networks using familiar tools, the collaboration reduces barriers to adoption for tokenized assets.

The integration enables financial institutions to maintain their existing infrastructure while gradually incorporating blockchain technology, providing a bridge between two previously distinct financial ecosystems.

SWIFT's Expanding Blockchain Strategy

This is not SWIFT's only venture into blockchain technology. The interbank network is also pursuing its own shared registry project based on blockchain for cross-border payments in collaboration with Consensys, one of the main development companies behind Ethereum (ETH).

These initiatives reflect SWIFT's strategic approach to integrating blockchain capabilities into the global financial infrastructure, recognizing the potential benefits of distributed ledger technology for improving traditional financial services.

What This Means for the Future

The collaboration between Chainlink, SWIFT, and UBS demonstrates how traditional financial institutions can embrace blockchain technology without abandoning their existing systems. This hybrid approach could accelerate the adoption of tokenized assets in mainstream finance while preserving the operational stability that large institutions require.

As more financial giants explore tokenization, these bridge technologies will likely play a crucial role in the gradual transformation of global financial markets, creating a more efficient, transparent, and accessible financial ecosystem.