Chainlink has announced one of the first tangible products from its pilot collaboration with Swift and UBS Asset Management, marking a major step in bridging traditional finance (TradFi) with blockchain-based infrastructure.
How the Integration Works
The new system connects Swift’s global financial messaging network with the Chainlink Runtime Environment (CRE), enabling banks and asset managers to execute fund transactions onchain while still using their existing messaging rails.
This integration builds directly on Project Guardian — a 2024 initiative involving Chainlink, the Monetary Authority of Singapore (MAS), and UBS Tokenize. The pilot proved that tokenized fund subscriptions and redemptions could be processed using Swift’s ISO 20022 messages, replacing layers of custodians, transfer agents, and intermediaries with a faster, automated workflow.
By reducing reconciliation steps, the system aims to cut costs and settlement times while keeping processes compatible with current banking infrastructure.
Why It Matters for Finance
The global asset management industry is massive — $147 trillion in assets under management (AUM) as of June 2025, according to McKinsey. Even a small percentage of tokenization could drive significant efficiencies and new financial products.
As Chainlink noted in its announcement:
“This interoperability unlock enables last-mile connectivity options already familiar and used by financial institutions and service providers today.”
For banks, the key advantage lies in familiarity — financial institutions can continue using Swift’s secure, regulated rails while gaining access to blockchain-based settlements.
Swift’s Broader Blockchain Push
Swift has steadily expanded its role in blockchain innovation:
- 2023: Partnered with Chainlink to test interoperability between banking systems and multiple blockchains.
- 2024: Joined Project Agorá, working with the Bank for International Settlements and 41 private institutions to explore tokenized commercial deposits and wholesale CBDCs.
- 2024 (March): Proposed a blockchain-based “state machine” using ISO 20022 messaging to synchronize balances across institutions.
- Ongoing: Working with Consensys and over 30 financial institutions to develop a real-time blockchain settlement system for cross-border payments.
This Chainlink–Swift integration demonstrates how tokenization of traditional assets is moving beyond pilots into production-ready tools. With asset managers like UBS actively participating, the line between TradFi and blockchain ecosystems is blurring.
If adoption continues, global funds could process subscriptions, redemptions, and settlements onchain in the same way they already use fiat rails today — potentially redefining how the $147 trillion asset management industry operates.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.