UBS said it completed the first on-chain redemption of a tokenized fund using Chainlink’s Digital Transfer Agent (DTA) in a live transaction that underscores how the blockchain infrastructure is beginning to interface with the $100 trillion global funds industry.
The transaction involved the tokenized money market fund UBS USD Money Market Investment Fund Token (uMINT) built on Ethereum.
DigiFT acted as an onchain distributor and settled the redemption using Chainlink’s DTA standard. UBS’s internal systems initiated the process, which Chainlink’s infrastructure then carried out, according to a press release shared with CoinDesk.
“This transaction represents an important milestone in how smart contract technologies and technical standards are improving fund operations and the investor experience,” said Mike Dargan, UBS’s group head of operations and technology.
“As the industry continues to embrace tokenized finance, this achievement illustrates how these innovations are driving greater operational efficiencies and new product mix opportunities.”
The transaction is part of a wider initiative by UBS Tokenize, the bank’s internal platform for blockchain-based financial products.
By automating key functions such as order reception, execution and settlement across digital and traditional systems, the technology aims to reduce operational complexity and processing time for the $100 trillion global funds industry.
It follows a recent pilot where Chainlink connected existing banking systems to blockchains via Swift, the financial messaging network.
This setup used Chainlink’s Cross-Chain Interoperability Protocol and Runtime Environment to process fund transactions using ISO 20022 messages, allowing banks to access blockchain rails without overhauling the legacy infrastructure.
