Chainlink and UBS advanced an integration that connects tokenized funds with Swift message traffic. The target is to automate subscriptions and redemptions across the USD 100 trillion fund sector. The partners state that institutions can keep their ISO 20022 message pipes while running tokenized funds with fewer manual steps and lower cost, affecting asset managers, custodians, and banks that service institutional portfolios.

The setup stitches together Chainlink components—mainly CCIP and the Chainlink Runtime Environment (CRE)—so that Swift-delivered ISO 20022 messages from bank systems convert into on-chain instructions that mint or burn fund tokens. The technical goal is to automate compliance checks, reconciliation, and settlement, cutting the manual work that now lifts cost besides stretches timelines. Chainlink also supplies its Decentralized Oracle Network (DON) to keep data intact during each step.

A $100T fund industry tokenization

The outline claims that automated subscriptions and redemptions raise operational speed and shrink cost, and that CCIP’s bridge between Swift and several chains adds interoperability. Turning Swift messages into on-chain calls aims to create atomic settlements—token and payment move in one transaction—so counterparty risk and liquidity gaps fall. Chainlink presents CRE as a regulator-friendly, scalable middle layer that lets banks touch blockchain without ripping out existing code.

Uptake hinges on pilot results, regulatory sign-off, and the capacity to keep security and compliance once volume grows. The shift from legacy steps to token flows will demand long integration and test cycles.

The joint effort arrives while ISO 20022 adoption speeds up and casts Chainlink or UBS as leaders of a proof of concept that, in their own words, may hurry tokenized funds into mainstream rails. The next checkpoint is the sector-wide switch to ISO 20022 around 2025; that event will act as a live test for scaling those links.