UBS announced the successful completion of the world’s first operational end-to-end tokenized fund transaction using Chainlink’s Digital Transfer Agent (DTA) standard.
Automation of on-chain fund management
The transaction involved UBS USD Money Market Investment Fund Token (uMINT), a tokenized money market fund built on the Ethereum blockchain. DigiFT acted as an on-chain distributor in the transaction and successfully requested and processed orders in exchange for subscriptions using DTA standards.
This means that fund operations can now be automated on the blockchain, making the process faster, more efficient, and easier to manage.
Mike Dargan, Group Chief Operations and Technology Officer, said: “This transaction marks an important milestone in how smart contract-based technology and technical standards enhance fund operations and the investor experience.”
He added that as much of the industry embraces tokenized finance, this achievement shows how such innovations can drive increased operational efficiency and new possibilities for product configurability.
Covers the entire fund lifecycle
The new end-to-end tokenized fund workflow can cover every stage of the fund lifecycle, including order capture, execution, settlement, and data synchronization across all on-chain and off-chain systems.
This shows how blockchain can streamline every step of traditional money management.
Financial milestone?
Chainlink CEO Sergei Nazarov said he is excited about this major milestone achieved with UBS and DigiFT, where he said Chainlink’s technology is being used to power internal tokenized fund trading across various blockchains.
“This enables secure, compliant, and scalable end-to-end workflows for tokenized assets, setting a new benchmark for on-chain institutional finance.” he said.
He added that UBS, one of the world’s leading financial institutions, is currently using Chainlink to expand its digital asset services while maintaining strong regulatory and operational standards. This shows that traditional finance can confidently move to blockchain with the same reliability and efficiency that traditional industries demand.
UBS and Chainlink promote tokenization
This comes after Chainlink launched a new solution that allows banks to manage blockchain-based assets directly through their existing Swift infrastructure. Chainlink first tested the solution using UBS’s in-house tokenization unit, UBS Tokenize.
This transaction shows how financial institutions are beginning to adopt blockchain, proving that fund operations can be performed securely and efficiently on-chain.
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