Chainlink, Swift and UBS Successfully Pilot Tokenized Fund Solution to Revolutionize $100 Trillion Industry
John: Hey everyone, I’m John, a veteran writer for Blockchain Bulletin, where I break down the latest in Web3, crypto, and blockchain in simple terms. Today, we’re diving into an exciting pilot project involving Chainlink, Swift, and UBS that’s set to shake up the massive world of tokenized funds—think bridging traditional finance with blockchain for smoother operations in a $100 trillion industry. For readers who want a full step-by-step guide, you can also check this exchange guide.
Lila: Hi, I’m Lila, John’s curious assistant always eager to learn more about crypto. John, what’s a tokenized fund anyway, and why is this pilot such a big deal for beginners like me?
What Are Tokenized Funds?
John: Great question, Lila. Tokenized funds are basically traditional investment funds—like mutual funds or ETFs—that get represented as digital tokens on a blockchain. This makes them easier to trade, track, and settle without all the paperwork of old-school finance.
Lila: Okay, that sounds efficient. But how does it differ from just buying crypto like Bitcoin?
John: It’s similar in using blockchain, but tokenized funds wrap real-world assets, like stocks or bonds, into tokens. For example, imagine a fund holding shares in companies; tokenizing it lets you buy or sell fractions instantly, 24/7, without waiting for bank hours. As of now in 2025, this is gaining traction because it combines the security of traditional assets with blockchain’s speed.
Background of the Pilot
Lila: So, tell me about this Chainlink, Swift, and UBS collaboration. When did it start?
John: The pilot kicked off as part of the Monetary Authority of Singapore’s Project Guardian, with initial results announced on 2024-11-05. Chainlink provided the blockchain oracle tech, Swift handled the messaging infrastructure that’s already used by banks worldwide, and UBS brought in asset management expertise. In the past, settling tokenized funds meant dealing with separate blockchain and traditional systems, which was clunky.
Lila: Oracle tech? That sounds like something from a fantasy movie—what does it mean here?
John: Haha, not quite magical, but close! Chainlink’s oracles are like secure bridges that feed real-world data into blockchains, ensuring everything stays accurate and tamper-proof. This pilot successfully tested extracting cash from tokenized funds using these tools, paving the way for broader adoption.
How the Solution Works
Lila: Break it down for me—how does this pilot actually function in practice?
John: Sure thing. The system lets banks process subscriptions (buying into the fund) and redemptions (cashing out) for tokenized funds via Swift’s existing messaging network. Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and other tools handle the blockchain side, automating settlements without needing entirely new infrastructure.
Lila: Any concrete examples from the pilot?
John: Absolutely. In the 2024-11-05 pilot, they demonstrated off-chain cash settlements for tokenized funds, meaning institutions could use their current Swift setup to interact with blockchain. A recent update on 2025-09-30 highlighted how this uses Chainlink’s CRE (likely a reference to their risk engine or similar) to enable seamless access. It’s like upgrading your car’s engine without buying a new vehicle—efficient and cost-effective.
Potential Impact on the $100 Trillion Industry
Lila: Wow, $100 trillion is a huge number. How could this revolutionize things?
John: The global fund industry is indeed massive, valued at around $100 trillion as of recent estimates. This pilot could speed up transactions, reduce costs, and open up tokenized assets to more investors. For instance, asset managers like UBS can now handle digital funds with the same ease as traditional ones, potentially increasing liquidity and accessibility worldwide.
Lila: Does that mean more people can invest?
John: Yes, especially in emerging markets. Looking ahead, as of 2025-10-01, sources like CoinDesk report this could transform how institutions manage tokenized assets, making blockchain a standard tool in finance. (And hey, if the markets get too exciting, remember to keep a cool head—no one wants to be the one who panic-sells at the wrong time!)
Risks and Safeguards
Lila: Sounds promising, but are there any downsides or risks I should know about?
John: Fair point—nothing’s without risks. Key concerns include regulatory hurdles, as tokenized funds must comply with laws in different countries. There’s also the risk of smart contract vulnerabilities, but Chainlink’s oracles add layers of security by verifying data off-chain.
Lila: How do they safeguard against that?
John: They use audited protocols and integrate with trusted systems like Swift. For example, the pilot emphasized compliance with existing financial regulations. Beginners should start small and use reputable platforms—here’s a quick list of safeguards:
- Choose platforms with strong security audits, like those vetted by Chainlink.
- Stay informed via official sources to avoid scams.
- Diversify investments to spread risk.
- Monitor regulatory updates, such as those from the MAS.
Looking Ahead: Future Developments
Lila: What’s next for this tech? Any updates as of today?
John: As of 2025-10-01, recent announcements from Sibos 2025 highlight Chainlink collaborating further with UBS for advanced tokenized funds workflows. This builds on the 2025-09-30 update where they advanced tokenization via Swift. Looking ahead, we might see full-scale implementations by 2026, potentially integrating more banks and expanding to other asset classes like real estate or commodities.
Lila: That could change everything! Any tips for readers wanting to get involved?
John: Start by educating yourself on blockchain basics and follow trusted news. If you’re intermediate, explore Chainlink’s official blog for deeper dives.
John: Wrapping up, this Chainlink-Swift-UBS pilot is a real step forward, blending old and new finance to make things faster and more inclusive for everyone. It’s exciting to see blockchain going mainstream without losing its innovative edge. And if you’d like even more exchange tips, have a look at this global guide.
Lila: Totally agree—tokenized funds could make investing as easy as sending a text. Thanks for the breakdown, John; it’s got me thinking about the future of money!
This article was created using the original article below and verified real-time sources:
- Chainlink, Swift and UBS succesfully pilot tokenized fund solution to revolutionize $100 trillion industry
- Chainlink, UBS Asset Management, Swift Complete Pilot to Extract Cash From Tokenized Funds
- Swift, UBS and Chainlink complete a landmark pilot in tokenized fund settlement
- Swift, UBS Asset Management, and Chainlink successfully complete innovative pilot to bridge tokenized assets with existing payment systems