Understanding Tokenized Fund Systems: Chainlink's Integration with Swift

By: Isha Das

Chainlink, in collaboration with Swift and UBS, has piloted a system aimed at transforming the global fund industry by utilizing existing messaging infrastructure for processing tokenized fund transactions. This collaboration leverages the ISO 20022 format through Chainlink's Runtime Environment (CRE) to trigger smart contracts, allowing seamless transactions without overhauling existing systems.Read more.

The innovative use of the existing Swift messaging system eases the transition into digital asset spaces, helping banks and asset managers manage tokenized workflows without major operational disruptions. Notably, this approach enhances compliance, reduces reconciliation work, and increases transparency, fostering broader tokenization adoption across global markets.