Chainlink and Swift have cooked up a slick new way for financial institutions to handle tokenized funds without tearing down their dusty old systems.
Imagine managing subscriptions and redemptions of these crypto assets using the trusty Swift messaging network.
No painful infrastructure overhauls required. UBS’s tokenization arm, UBS Tokenize, just took this for a spin in a pilot that extends their work with Singapore’s Monetary Authority on Project Guardian. Talk about financial innovation with a wink.
Playing nice with legacy systems
How it works? Chainlink’s Runtime Environment, or CRE listens for ISO 20022-compliant Swift messages that sweep in like digital postal carriers.
These messages then fire up smart contract actions through Chainlink’s Digital Transfer Agent, DTA standards.
The result? Workflow magic for tokenized funds that plays nice with legacy systems and skips the headache of building new identity or key management layers.
Sergey Nazarov, Chainlink’s co-founder and the unofficial wizard of decentralized oracles, couldn’t hide his excitement.
He calls this a landmark innovation that shows transfer agents and financial institutions how to wield smart contracts without pulling their hair out over technical complexities.
UBS is front-row at this blockchain concert, proving how smart contract tech can jazz up product lifecycles in finance.
AI-powered blockchain workflows
This partnership is quite a big deal for Chainlink, the oracle network that bridges blockchains with real-world data and payment systems.
It’s a plug-and-play ticket into the colossal $100 trillion global fund circus. Swift, known for its global financial messaging webs connecting over 11,000 institutions, provides the sturdy rails while Chainlink drops the digital magic to trigger on-chain workflows.
And Chainlink’s ambitions don’t stop here. The latest big news? Industry commentators shared that they just finished phase two of a pilot using AI-powered blockchain workflows for corporate actions, a notoriously painful and costly process.
By coordinating language models like GPT, Gemini, and Claude, they generated ISO 20022-ready records zipping through Swift.
Names like DTCC, Euroclear, UBS, and BNP Paribas were in on this, flexing muscle together to streamline finance’s messiest chores.
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Shared ledger for cross-border payments
Also, don’t forget that Swift is cooking its own blockchain stew with Consensys, the creators of MetaMask and Ethereum layer-two Linea.
Over 30 global banks, including big ballers like Bank of America and HSBC, are testing a shared ledger for cross-border payments.
This project wants to stitch together financial infrastructure onchain, without giving compliance and regulatory officials heart attacks.
Chainlink and Swift’s tag-team is cracking open the door for traditional finance to tap into on-chain tokenized assets with real-world reliability, and without losing their collective minds trying to keep up.
Cryptocurrency and Web3 expert, founder of Kriptoworld
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With years of experience covering the blockchain space, András delivers insightful reporting on DeFi, tokenization, altcoins, and crypto regulations shaping the digital economy.
