What happened?
Chainlink and Swift announced a technical solution that lets banks trigger blockchain transactions using ISO 20022 Swift messages without changing their existing systems. UBS piloted the setup, sending Swift messages that Chainlink’s Runtime Environment turned into tokenized fund subscription and redemption actions via its Digital Transfer Agent. Chainlink is also running broader pilots with about two dozen banks and infrastructure firms, and Swift is testing on-chain settlement using Ethereum Layer 2 Linea.
Who does this affect?
This affects banks, asset managers, transfer agents, custodians and other financial infrastructure firms that handle fund flows and settlements. It also matters to fintechs, blockchain providers and market utilities like DTCC and Euroclear that support industry plumbing. End investors and fund clients could see the effects through faster processing, more automation and potentially different fee structures.
Why does this matter?
By letting institutions use existing messaging rails to trigger on-chain actions, the move could speed up tokenization across the $100+ trillion fund industry and cut reconciliation and processing costs. Faster, automated on-chain workflows and Layer 2 settlement pilots can boost liquidity, reduce settlement times and pressure old intermediaries to adapt. Overall, this lowers the barrier for mainstream crypto use in finance and could change how large parts of the market move and settle value.