Chainlink and Swift Partners to Bring Tokenized Funds to Banks

Chainlink and Swift have expanded their partnership with a new system that allows banks and financial institutions to manage tokenized funds using their existing systems. The setup combines Chainlink’s Runtime Environment (CRE) with Swift’s trusted financial messaging network. 

With this development, banks can use blockchain technology without changing their current systems or creating new security tools.

Banks to Access Blockchain Networks Without Changing Old Systems

In a recent statement, Chainlink explained that many banks want to try to leverage blockchain networks, but they do not want to risk changing their old infrastructure. With this new system, they can connect to blockchain networks through the same Swift messages they already use every day.

The first test case was done with UBS Tokenize, UBS’ own tokenization unit. This pilot followed earlier work from Singapore’s Project Guardian, led by the Monetary Authority of Singapore. This studies how tokenized assets can make the financial system stronger.

During the announcement, the oracle provider  explained how the initiative works. As revealed, banks initiate the process by sending ISO 20022 messages through the Swift network. Chainlink’s Runtime Environment receives these messages and uses the Digital Transfer Agent (DTA) standard to turn them into blockchain instructions. 

These instructions trigger smart contracts that handle tasks like fund subscriptions, redemptions, or other tokenized asset transactions. This allows banks to settle securely and transparently on the blockchain without adding new systems or identity tools.

Chainlink and Swift Build Bridge to $100 Trillion Fund Market

The global fund industry is worth more than $100 trillion. Chainlink described this solution as a “plug-and-play” tool that could help banks and asset managers enter this market with less effort.

Swift already serves over 11,000 institutions in more than 200 countries and handles trillions of dollars in cross-border payments. By combining its network with Chainlink’s blockchain technology, the two partners are creating a bridge between traditional finance and digital assets.

New Blockchain and AI Projects Gain Backing from Global Banks

This is not the only project using Chainlink’s Runtime Environment and Swift messages. Earlier this week, Chainlink also announced the second phase of a pilot that used blockchain and artificial intelligence (AI) to process corporate actions.

Corporate actions, such as dividends and mergers, are one of the most costly and complex tasks in global finance. In that pilot, large language models such as GPT, Gemini, and Claude were used to create structured ISO 20022 records. These records were then transmitted through Swift’s network. The pilot had the support of major organizations, including DTCC, Euroclear, UBS, DBS, and BNP Paribas.

At the same time, Swift is also working on another blockchain project with Consensys, the company behind MetaMask and Ethereum’s Linea network. This project is building a shared blockchain ledger for cross-border payments. More than 30 major banks, including Bank of America, HSBC, and BNP Paribas, are already testing it.