TLDR
- Chainlink expands its collaboration with SWIFT to streamline tokenized fund management for financial institutions.
- The partnership enables financial institutions to manage tokenized fund processes using SWIFT messaging and the Chainlink Runtime Environment.
- UBS Tokenize leads the first technical pilot, extending previous work under the Monetary Authority of Singapore’s Project Guardian.
- The solution triggers subscription and redemption workflows without requiring financial institutions to overhaul legacy systems.
- Chainlink’s decentralized oracle network connects real-world data and smart contracts, making blockchain accessible for traditional institutions.
Chainlink has expanded its collaboration with SWIFT to streamline the management of tokenized funds through existing financial systems. The new solution enables institutions to utilize SWIFT messaging and the Chainlink Runtime Environment (CRE) directly to manage tokenized fund processes. This development aims to enhance accessibility for financial institutions without necessitating significant infrastructure modifications.
Chainlink and SWIFT Streamline Tokenized Funds
The partnership between Chainlink and SWIFT builds on previous collaborations, enhancing the efficiency of tokenized funds. The first application involves a technical pilot with UBS Tokenize, the tokenization arm of UBS. This pilot extends prior work conducted under the Monetary Authority of Singapore’s Project Guardian initiative.
Chainlink’s CRE and SWIFT messaging work together to trigger subscription and redemption workflows for tokenized funds. This setup eliminates the need for financial institutions to replace legacy systems or introduce new identity management solutions.
“This innovation shows how smart contracts can simplify tokenized asset management,” said Sergey Nazarov, co-founder of Chainlink.
Chainlink Integrates ISO 20022 for Tokenized Assets
The integration uses ISO 20022-compliant SWIFT messages, which activate smart contract events in Chainlink’s Digital Transfer Agent (DTA) technical standard. This enables institutions to automate workflows for tokenized assets while maintaining their existing systems. The technology aims to make blockchain-based processes accessible without disrupting traditional infrastructure.
By using Chainlink’s decentralized oracle network, institutions can leverage real-world data and APIs. Chainlink’s solutions are designed to be a “plug-and-play” option, making it easier for the global fund industry to adopt blockchain technologies.
“This project highlights how institutions can benefit from blockchain without overhauling their current infrastructure,” Nazarov added.
The collaboration between Chainlink and SWIFT aligns with efforts to enhance traditional financial workflows through the use of blockchain. As a decentralized oracle network, Chainlink enables the secure connection of smart contracts to real-world data. By leveraging SWIFT’s trusted messaging network, financial institutions can now explore blockchain-based solutions without significant disruption.
