ChainLink said it has developed a technology process that allows banks to interact with tokenized investment funds through Swift, the interbank messaging system that supports much of traditional finance.
In UBS’s pilot, ChainLink’s Runtime Environment (CRE) handled subscriptions and redemptions for tokenized funds using ISO 20022 Messages, the international standard for financial messaging used by SWIFT.
After the CRE received the quick message, the blockchain workflow was triggered directly from the existing system in UBS. According to a press release shared with Coindesk, it triggered a subscription or reimbursement for the ChainLink Digital Transfer Agent.
This setup allows banks to access their blockchain infrastructure using tools they already use, like Swift, but ChainLink’s infrastructure handles the rest.
The pilot is based on previous work by Project Guardian, a tokenization initiative led by the central bank of Singapore. The latest developments add interoperability that allows agencies to use Swift to trigger on-chain events.
The launch comes after ChainLink announced another pilot with 24 global banks, including DTCC and Euroclear, as well as financial infrastructure providers. The project used ChainLink tools and AI to extract and standardize data from corporate action announcements. This is a process that currently costs the industry an estimated $58 billion a year.
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