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Chainlink Hooks Swift Into Blockchain to Simplify Banking Operations

Key Takeaways

  • ​Chainlink connected its execution platform (CRE) with Swift messaging to help banks carry out blockchain actions using existing systems;
  • A pilot with UBS and Swift showed that investment fund tasks, like redemptions, can be done on-chain using standard Swift messages;
  • By reducing intermediaries and delays, the integration simplifies fund processing without disrupting current financial workflows.

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Chainlink Hooks Swift Into Blockchain to Simplify Banking Operations

Chainlink LINK $22.36 has taken a step forward in helping banks use blockchain technology without overhauling their systems.

The company has connected Chainlink Runtime Environment (CRE) with the messaging tools banks already use through Swift.

This update is part of an effort involving UBS Asset Management and Swift, which together ran a pilot project with Chainlink. The goal was to show how traditional financial institutions could complete blockchain transactions using the systems they already rely on.

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A key part of the pilot involved testing how tokenized fund actions, like subscribing to or redeeming investment funds, could be carried out on a blockchain.

Typically, these steps are processed through several layers of intermediaries, including custodians and fund administrators. Each layer adds delays and extra work.

The pilot showed that using Swift’s standard ISO 20022 messages, these same tasks could be triggered on-chain, which reduces the number of steps involved.

This work builds on Project Guardian, a separate initiative launched in 2024 with the Monetary Authority of Singapore, UBS Tokenize, and Chainlink.

Swift, a cooperative owned by banks, has been at the center of global money transfers since the 1970s. It first partnered with Chainlink in 2023 to test how its network could serve as a single point of access to various blockchains.

Meanwhile, a new project led by UK Finance recently explored the use of digital versions of traditional bank deposits linked to the British pound. What is the goal of the project? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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