Chainlink has launched a pilot with UBS, integrating Swift messaging into tokenized fund workflows, with an aim of bridging traditional finance systems with blockchain technology.
Key Takeaways:
- Chainlink's Runtime Environment (CRE) processes Swift's ISO 20022 messages to trigger blockchain-based fund subscriptions and redemptions.
- UBS Tokenize pilot uses existing Swift infrastructure, no new systems required.
- This collaboration builds upon previous initiatives, showing scalable blockchain-traditional finance integration.
Chainlink has announced earlier today, September 30, a significant advancement in integrating traditional financial systems with blockchain technology on their official X (formerly Twitter) account. In partnership with UBS Tokenize, Chainlink's Runtime Environment (CRE) has been utilized to process Swift's ISO 20022 messages, facilitating on-chain fund subscriptions and redemptions.
This development allows financial institutions to manage tokenized fund workflows directly from their existing systems, leveraging the Swift infrastructure they have relied upon for decades.
Seamless Integration Without New Infrastructure
The pilot project demonstrates how institutions can access blockchain networks without the need for new infrastructure or complex identity and key management solutions. By using Swift messages to trigger on-chain events, the solution provides a seamless integration between traditional finance and blockchain, addressing a critical barrier to the widespread adoption of digital assets in the financial industry.
This shows how institutions can access blockchains without needing to upgrade to new infrastructure, replace their existing processes, or integrate new identity and key management solutions, Chainlink wrote in a PR Newswire report.
Diagram illustrating the Chainlink and UBS pilot integrating Swift messaging with a tokenized fund. Source: Chainlink/PRNewsfoto
Boosting Efficiency in the $100 Trillion Fund Industry
This integration of Swift messaging with Chainlink’s CRE is poised to unlock significant benefits for the global fund industry, valued at over $100 trillion. By allowing institutions to utilize blockchain technology through familiar systems, the solution’s goal is to enhance efficiency, transparency, and scalability in managing tokenized fund workflows.
Paving the Way for Broader Adoption of Tokenized Assets
The pilot's success serves as a significant step toward providing the solutions in the gap between traditional finance and blockchain technology. Being able to have seamless interaction between existing financial systems and blockchain networks makes the collaboration between Chainlink and UBS a catalyst, and also a stepping stone for broader adoption of tokenized assets in the financial industry.
LINK Holds Steady Amid UBS Pilot Integration
Despite recent fluctuations and Chainlink’s announcement of UBS pilot integration, LINK's price remains within a stable range, indicating sustained investor interest. As of this writing (12:00PM UTC), TradingView shows Chainlink’s native token LINK is trading at approximately $21.40, reflecting a 1.0% gain over the past 24 hours while reaching intraday higha near $21.88 and lows around $21.40 as per CoinGecko.
What’s Next
This integration marks a significant development especially in the evolution of financial systems. Enabling institutions to manage tokenized fund workflows through existing infrastructure makes the solution address key challenges in adopting blockchain technology. As the financial industry continues to adapt and discover what digital assets has to further offer, initiatives and integrations like this provides a clearer path towards interconnected and efficient financial ecosystem.
Summary
Chainlink and UBS piloted Swift ISO 20022 messaging routed through Chainlink’s CRE to trigger on-chain fund subscriptions/redemptions no new infrastructure required. The approach lets institutions tap blockchains via familiar Swift rails, potentially boosting efficiency and accelerating tokenized-fund adoption; LINK traded steadily near $21.40.
