Swift, UBS Asset Management, and Chainlink have recently completed a pilot programme focused on settling tokenised fund subscriptions over Swift . The project demonstrated how digital asset transactions could integrate with fiat-based payment systems, providing access to over 11,500 financial institutions across more than 200 countries and regions.

According to Swift, traditional fund management processes for subscriptions and redemptions are often hindered by delays, manual procedures, and limited transparency. These challenges can raise operational costs, restrict liquidity, and potentially result in missed opportunities within the USD 63 trillion mutual fund market. The pilot revealed that financial institutions could use blockchain technology through the Chainlink platform and the Swift network to streamline subscriptions and redemptions for tokenised funds.

This approach enables straight-through processing for payment without requiring the global implementation of an on-chain payment system, helping to automate the end-to-end fund lifecycle. Advancing tokenised fund operations with Swift and Chainlink The pilot builds on previous work between UBS Asset Management and SBI Digital Markets to develop a Digital Subscription and Redemption system designed for tokenised funds. It also aligns with Singapore's Project Guardian, a global initiative led by policymakers and industry stakeholders to explore how asset tokenisation can improve liquidity and market efficiency.

Using Swift's existing infrastructure, the pilot offered a comprehensive payment orchestration system for fund transactions, reinforcing Swift’s capability to securely connect financial institutions to various blockchain networks. Swift's infrastructure had previously shown its capacity for secure and scalable integration with blockchain networks. This latest initiative with Chainlink further established a workflow where necessary interactions among stakeholders allow UBS's tokenised investment fund to automatically mint or burn fund tokens for investors when specific conditions are met.

Officials from Swift emphasised that widespread adoption of digital assets depends on their ability to connect with both traditional payment systems and emerging digital currencies. They noted that the project leverages the global Swift network to link digital assets with established systems, allowing financial institutions to conduct secure and scalable transactions across different digital asset classes and currencies. Chainlink representatives highlighted how the company enables financial institutions to use Swift’s infrastructure for digital asset payments, observing that this capability widens the potential user base and capital flow for digital assets.

They expressed optimism about future adoption and the expanded role these off-chain payment options might play in the financial ecosystem. Source: Link .