Chainlink said it developed a technical process that enabled banks to interact with tokenized investment funds through Swift, Interbank -Messaging system that supports much of traditional financing.
In a pilot with UBS, Chainlink’s Runtime Environment (CRE) subscriptions and redemptions to a tokenized fund using ISO 20022 messages, the international standard for financial messages used by Swift.
BLOCKCHAIN WORKS WHEN TRAINED DIRECTLY FROM UBS’S EXISTING SYSTEMS AFTER CREE RECEIVED SWIFT MESSAGES. It then triggered the subscriptions or redemptions in Chainlink Digital Transfer Agent, according to a press release shared with Coindesk.
The setup lets the banks have access to blockchain infrastructure using tools they are already using, such as Swift, while Chainlink’s infrastructure handles the rest.
The pilot is based on previous work from Project Guardian, a tokenization initiative led by Singapore’s central bank. The latest developments add interoperability that allows institutions to use Swift to trigger on-chain events.
The launch comes after Chainlink announced a separate pilot with 24 global banks and providers of financial infrastructure such as DTCC and Euroclear. This project used Chainlink’s tools and AI to extract and standardize data from corporate action messages, a process that currently costs the industry estimated $ 58 billion annually.
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