Scheme of Swift, Chainlink, and UBS operation for tokenized fund transactions
One of the largest players in the blockchain infrastructure world — Chainlink — announced the launch of a new product, created in collaboration with Swift and UBS. This is a solution that, for the first time, allows banks to use familiar Swift channels to conduct fund transactions directly on the blockchain.
This event is the result of years of experimentation and marks the transition from pilot initiatives to practical application of the technology.
Integration of CRE and Swift
The development is based on the Chainlink Runtime Environment (CRE) — an execution layer now embedded in the Swift messaging system. Thanks to this, banks and other financial institutions can connect to blockchains without changing their existing infrastructure. In other words, institutions gain access to tokenized assets without having to rebuild existing processes.
This step continues the logic of Project Guardian, initiated in 2024 with the support of the Monetary Authority of Singapore, Chainlink, and the UBS unit responsible for tokenization. At that time, participants proved that subscription and redemption of funds can be performed via Swift messages with subsequent recording of operations on the blockchain. In the classic model, such transactions go through a whole chain of intermediaries, which takes days and requires additional reconciliations.
Faster settlements and reduced costs
The introduction of blockchain into Swift infrastructure eliminates many unnecessary steps. Previously, operations went through custodians, administrators, and asset transfer agents, but now they can be recorded directly in a distributed ledger. This reduces the time required from several days to hours and minimizes the risk of errors during data reconciliation.
According to Chainlink, this solution gives banks ‘last mile connectivity’ — that is, the ability to use new technologies through already familiar channels without breaking established processes.
The evolution of Swift in blockchain
The first joint experiments between Swift and Chainlink took place back in 2023. At that time, it was shown that Swift infrastructure could become a single gateway for working with several blockchains at once.
In 2024, the organization joined the Project Agora initiative, led by the Bank for International Settlements together with dozens of global financial companies. There, they studied how tokenized deposits of commercial banks could interact with central bank digital currencies on a single platform.
In the same year, Swift introduced the ‘state machine’ concept — a system for tracking transactions and balances. It can be launched both on the blockchain and on the centralized Transaction Manager platform, which is already used for interbank settlements.
New partnerships and prospects
Currently, Swift is collaborating with Consensys and more than 30 financial institutions to develop a blockchain settlement system that will enable international transfers 24/7. In essence, this is about creating a unified infrastructure where traditional money, tokenized assets, and central bank digital currencies can coexist and be exchanged with each other in real time.
According to McKinsey estimates, by June 2025, the volume of assets under management worldwide exceeded $147 trillion. Even partial tokenization of this capital through Swift infrastructure opens up huge prospects for the market.
What this means for the financial industry
In fact, Swift is transforming from a classic messaging provider into a full-fledged blockchain hub. Banks gain access to tokenization without having to implement new protocols or rebuild their architecture. For investors, this means shorter settlement times, for funds — lower costs, and for the global financial system — a step towards integrating traditional and decentralized solutions.
Thus, the experiments of recent years are moving into the practical realm. Swift and Chainlink have proven that blockchain can be integrated into old infrastructure without destroying the familiar model. And this could be the catalyst for mass adoption of fund tokenization worldwide.
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