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Chainlink and UBS Partner with Swift to Bridge Financial Institutions to Blockchain

Chainlink and UBS Partner with Swift to Bridge Financial Institutions to Blockchain

Chainlink introduces a pilot allowing banks to leverage Swift for seamless interaction with blockchain-based tokenized investment funds, marking a step toward blockchain adoption in traditional finance.

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Fact Check
The statement is strongly confirmed by multiple credible sources, including a press release directly from Swift (Source 5), one of the primary entities involved. Numerous other pieces of evidence from Chainlink, PR Newswire, and industry news outlets corroborate that Swift, UBS (specifically UBS Asset Management), and Chainlink collaborated on pilot projects to bridge existing financial systems with blockchain technology for tokenized assets.
    Reference: 1
Summary

Chainlink has launched a solution that allows banks to interact with tokenized investment funds via Swift, the traditional finance messaging system. The pilot with UBS processes subscriptions and redemptions for tokenized funds using Swift’s ISO 20022 messaging standard, with Chainlink's Runtime Environment (CRE) enabling blockchain interoperability. This move aims to integrate blockchain technology into the $100 trillion global fund industry, following earlier collaborations like Project Guardian and a separate pilot with 24 global financial institutions.

Terms & Concepts
  • Tokenized Fund: A fund that represents ownership of a specific asset or pool of assets in the form of digital tokens, often on a blockchain.
  • Chainlink Runtime Environment (CRE): A decentralized execution environment that enables smart contracts to interact securely with off-chain data and systems, including traditional financial infrastructures.
  • ISO 20022: A global standard for electronic data interchange between financial institutions, used for transmitting payment messages and other financial information.