Chainlink, Swift, UBS: Transforming Finance with Tokenized Funds

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Chainlink, Swift, and UBS Innovative Pilot: The Future of Tokenized Funds

Hi, I'm John. Today I'm going to explain the latest topics in blockchain technology, including Chainlink, Swift, and tokenized fund solutions from UBS, in an easy-to-understand way. Even if you're just starting to get interested in cryptocurrencies, I'll make it easy to understand, so please feel free to read on.

This project seamlessly connects traditional financial systems with blockchain, potentially transforming the $100 trillion global fund industry. It's important now because, as the adoption of digital assets accelerates, there's a need for mechanisms that can leverage existing infrastructure. This initiative could help financial institutions more easily adopt blockchain, opening up new opportunities for us as individual investors.

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What is a tokenized fund? A basic refresher

First, let me briefly explain tokenized funds (investment fund assets digitized as blockchain tokens). This is a technology that represents traditional investment funds on the blockchain, improving transaction efficiency and transparency. In the past, this type of tokenization was mainly experimental, but now pilots are underway to put it into practical use.

Chainlink (a decentralized oracle network that provides data feeds on the blockchain) is leading the way in this field, in collaboration with Swift (an international remittance network) and UBS Asset Management (a major Swiss asset management company). For beginners, it's helpful to think of tokenization as "digitizing paper stock certificates."

Pilot Background: Bridging the gap between traditional finance and blockchain

The project's roots date back to a pilot announced on November 5, 2024, when Swift, UBS Asset Management, and Chainlink successfully experimented with integrating tokenized assets into existing payment systems as part of the Monetary Authority of Singapore's (MAS) Project Guardian, enabling financial institutions to handle off-chain cash payments on the blockchain.

As of September 30, 2025, the pilot has further evolved, with Chainlink's Runtime Environment (CRE, an environment that streamlines blockchain workflows) being used to develop a solution that processes subscriptions and redemptions for tokenized funds via the Swift messaging system. This is groundbreaking in that it allows the $100 trillion fund industry to adopt blockchain without replacing existing tools.

Latest Progress: 2025 Pilot Details

In 2025, Chainlink, Swift, and UBS announced plans for a full-scale production rollout at Sibos 2025. This will enable tokenized fund workflows to be executed directly from existing systems, leveraging Swift's infrastructure used by over 11,500 financial institutions. As reported by CoinDesk, this solution will remove blockchain barriers and accelerate the adoption of digital assets.

Specifically, we are using CRE to trigger on-chain workflows and enable seamless integration with traditional banking systems. Learnings from previous projects have been applied and production-level testing is currently underway.

Use cases and benefits of this solution

For example, asset management companies dealing with tokenized funds could use Swift messaging to process subscriptions (investment applications) and redemptions (withdrawals of funds), potentially improving transaction speeds and reducing fees.

Let's summarise the benefits in bullet points, so you can easily visualize them:

Utilizing existing infrastructure: Blockchain can be introduced without introducing a new system.
Global compatibility: Swift is used by financial institutions in over 200 countries, making international transactions smooth.
Improved security: Chainlink oracles provide trusted data, reducing the risk of tampering.
Efficiency: Bridging off-chain and on-chain payments to reduce processing times.

In the future, such use cases may become more widespread and may even have an impact on fund products aimed at individual investors.

Risks and countermeasures: Key points for safe use

However, blockchain technology also carries risks, such as the possibility of cyberattacks and changing regulations. Authorities such as the MAS are currently developing guidelines, but investors should check the latest information at their own risk. While this is not investment advice, we recommend using two-factor authentication and a trusted wallet as security measures.

In terms of regulations, it is also important to comply with the regulations of each country. In Japan, in accordance with the rules of the Financial Services Agency, virtual currency transactions must be conducted through registered businesses. The key to minimizing risk is to start with a small amount and gain experience.

Outlook: Tokenization will change the future of finance

If the current pilot is successful, full-scale commercial deployment is expected in the future. According to Chainlink's blog, collaboration with major institutions such as Euroclear and DTCC is also progressing, and the day when blockchain becomes the standard in traditional finance is approaching. Why not follow this trend?

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John's Summary

This time we talked about the Chainlink, Swift, and UBS pilots. I think this initiative is a big step towards making blockchain accessible to everyone. Even beginners can enjoy the new world of finance by learning a little at a time. If you have any questions, please leave a comment!

This article has been compiled and fact-checked by the author, based on the following original articles and public information:

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Chainlink, Swift and UBS Innovate $100 Trillion Market with Tokenized Fund Solution