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- Chainlink introduced a new solution that allows banks to manage digital asset workflows using their existing Swift messaging systems.
- The system uses the Chainlink Runtime Environment to connect traditional financial infrastructure with blockchain networks.
- A pilot with UBS demonstrated tokenized fund subscriptions and redemptions through standard banking messages.
Chainlink has introduced a new technical solution that enables financial institutions to manage digital asset operations through their existing banking systems. The development combines the global messaging infrastructure of Swift with the Chainlink Runtime Environment.
Financial institutions across the world rely on Swift messages to send payment instructions and financial data. The new solution allows the same messages to trigger blockchain-based transactions. Banks can therefore interact with digital assets without changing their current operational systems.
The Chainlink Runtime Environment works as a connection layer between financial infrastructure and blockchain networks. It receives Swift messages and translates them into actions that occur on blockchain platforms. This structure removes the technical complexity that often slows blockchain adoption in traditional finance. Institutions do not need to build new infrastructure or redesign existing processes.
Swift and Chainlink Test Tokenized Fund Operations with UBS
They can continue to use the operational tools and systems that support their current banking activities. The solution also avoids the need to install new identity or key management frameworks. This simplifies integration and reduces operational risk. A technical and operational pilot with UBS demonstrated how the system works in practice.
The test involved UBS Tokenize, the bank’s internal unit that focuses on tokenized financial assets. The pilot focused on subscriptions and redemptions for a tokenized investment fund. These actions usually require complex processing and coordination between financial institutions. During the test, Swift ISO 20022 messages triggered these actions directly.
The Chainlink Runtime Environment received the messages and activated blockchain workflows. These workflows ran through the Chainlink Digital Transfer Agent technical standard. The system executed subscription and redemption operations for a tokenized fund smart contract. This process showed how traditional financial messages can control blockchain-based asset workflows.
Expanding Work From Singapore’s Project Guardian
The development builds on earlier collaboration involving the Monetary Authority of Singapore. In 2024, Chainlink, Swift, and UBS worked together under Project Guardian to test tokenized financial infrastructure. That project explored how tokenized fund subscriptions and redemptions could settle while cash payments remained off-chain through Swift systems.
The new solution expands the scale of that concept. The Chainlink Runtime Environment now allows institutions to trigger many types of blockchain events through standard Swift messages. This design creates stronger interoperability between traditional financial networks and blockchain systems.
Industry observers believe the technology could support the global investment fund sector, which holds more than 100 trillion dollars in assets. Blockchain infrastructure may deliver faster settlement, improved transparency, automated compliance processes, and greater efficiency for digital asset management.
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