The Convergence of Swift and Blockchain

In a pilot project conducted with UBS, the CRE system managed tokenized fund transactions via the ISO 20022 messaging standard used by Swift. Blockchain workflows were triggered directly from UBS’s existing systems upon receiving Swift messages, and subscriptions and payments were automatically processed through the Chainlink Digital Transfer Agent.

This approach allows banks to integrate blockchain technology while continuing to use familiar financial instruments. Chainlink’s infrastructure manages the remaining technical processes, providing a secure and efficient environment for institutional applications.

Pilot Program for the Trillion-Dollar Fund Industry

The pilot aims to test the advantages of blockchain technology for the $100 trillion global fund industry. The project builds on previous pilot initiatives, including the Project Guardian initiative led by the Monetary Authority of Singapore.

Chainlink’s solution increases interoperability by enabling institutions to use Swift to trigger on-chain events. Additionally, a separate pilot involving 24 global banks and financial infrastructure providers (such as DTCC and Euroclear) combines blockchain and AI to extract and standardize data from corporate action announcements.

Market and Industry Commentary

Experts state that this development marks a critical turning point for tokenized funds and digital asset products. The integration of Swift with blockchain simplifies institutional adoption of blockchain infrastructure and accelerates innovation within the sector.

The collaboration between Chainlink and UBS serves as a bridge between traditional finance and the blockchain world. Consequently, corporate action processes, which are estimated to cost $58 billion annually, become more efficient, transparent, and faster.

 In the comment section, you can freely share your comments and  opinions about the topic. Additionally, don’t forget to follow us on Telegram, YouTube, and Twitter for the latest news and updates.

The post Tokenization in the Fund Industry: Major Move from Chainlink and UBS! appeared first on Coin Engineer.

The organization that manages Swift’s global network announced that it will test blockchain-based transactions, previously only tested in test environments, with real money and asset movements between different blockchain ledgers. This change will serve as a link for banks experimenting with blockchain technology across platforms.

Swift’s Head of Innovation Nick Kerigan said they want to avoid the technological fragmentation that occurs when banks develop their own blockchain infrastructures. “Our goal is to ensure that digital assets and digital currencies, regardless of the technology they are created with, work seamlessly with the existing financial system,” he said.

Might interest you: What is BabyDoge?

Swift has been testing blockchain-based transactions to support central bank digital currencies (CBDCs) since 2021. This new step will see the first live testing of digital asset transactions on the Swift network. The trials will cover payment transactions and securities exchanges.

Banks that have previously participated in Swift’s blockchain trials include major banks such as Deutsche Bank, HSBC, NatWest Group, Santander and Sumitomo Mitsui Banking Corp. Swift emphasizes that as the financial community embraces new technologies such as blockchain and digital assets, it is imperative to incorporate these technologies into its own ecosystem.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Banks to Use Swift Tokens Starting in 2025 appeared first on Coin Engineer.