The project enables financial institutions to manage tokenized fund subscriptions and redemptions directly from their existing systems. The latest crypto news by Coinidol.com.
Chainlink, the decentralized oracle network, announced a landmark technical solution developed in collaboration with global financial giant UBS and the global financial messaging network SWIFT.
This may become a crucial step in bridging the gap between TradFi (traditional finance) and DeFi (decentralized finance). It provides a “plug-and-play” solution that allows major financial players to access the speed and efficiency of blockchain without fully overhauling their existing technology stacks, accelerating the institutional tokenization trend.
SWIFT integration
Institutions can now trigger tokenized fund workflows using the same SWIFT messaging (ISO 20022) infrastructure they have used for decades.
By utilizing the Chainlink Runtime Environment (CRE), the solution eliminates a critical technical barrier, allowing traditional finance to seamlessly interact with complex on-chain processes.
Sergey Nazarov, Co-Founder of Chainlink, commented in the official press release:
“UBS is demonstrating how the use of smart contract-based technologies can be used by financial institutions to more readily explore new types of product lifecycle composability.”
This breakthrough specifically targets the multi-trillion-dollar global fund industry, reducing operational friction, automating compliance, and paving the way for the large-scale adoption of tokenized real-world assets.