Blockchain
ChainLink has announced a new technical framework that will allow global financial institutions to directly manage tokenized fund operations through Swift’s long-standing messaging network.
Integrationwith ChainLink Runtime Environment (CRE), allows banks and asset managers to trigger fund subscriptions and redemptions using ISO 20022 messages, and bypass the need for costly infrastructure overhauls.
The announcement came in Frankfurt on September 30th, with ChainLink placing the solution as a major step in bringing blockchain connectivity to the mainstream capital market. Using the same rapid rails that have been relied on for decades, agencies now have access to tokenized assets without introducing new IDs or major management systems.
The breakthrough is based on work completed in 2024 under the financial authorities of the Singapore Project Guardian.
In the most recent phase, UBS tokenization performed live technical and operational pilots. In this pilot, CRE processed the swift messages to trigger on-chain subscriptions and redemption flows within tokenized fund smart contracts. Transactions were performed via the ChainLink Digital Transfer Agent (DTA) standard, which supports off-chain payments, while enabling Onchain lifecycle events.
According to ChainLink, this extended approach simplifies the interaction of institutional blockchains by providing a plug-and-play interoperability layer and allowing Swift messages to initiate Onchain actions in a standardized way. The company believes that by making tokenized workflows faster, more transparent and easier to scale, this will unlock the great potential of the global fund management industry of over $100 trillion.
Chainlink co-founder Sergey Nazarov described development as a turning point. “Smart agreements and emerging standards show that transfer agents and other entities can manage on-chaining of tokenized asset workflows.
ChainLink emphasized that the solution goes beyond technology integration, aiming to reduce settlement challenges, support compliance automation, and provide increased efficiency through programmable infrastructure. Working together with CRE and Swift, the company looks at a clear path to mainstream adoption of tokenized assets across the capital market.
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