Chainlink and Swift have collaborated to create a new technical framework for financial institutions to manage digital asset workflows using Swift’s messaging system without the need for infrastructure upgrades. UBS successfully piloted the integration, showing the potential for tokenized fund operations to be managed entirely through Swift messaging, reducing costs and maintaining regulatory compatibility. This innovation aims to bring onchain automation to the $100+ trillion fund industry. The integration allows banks to trigger blockchain transactions using ISO 20022 messages, demonstrating the potential for onchain events to be triggered directly from traditional messaging rails, critical for institutional adoption of tokenized finance. The Chainlink-Swift integration is seen as a bridge for the fund industry to explore full onchain workflows, boosting transparency and enabling programmable compliance. Swift has launched a blockchain pilot using Ethereum Layer 2 network Linea with major banks like BNP Paribas and BNY Mellon to test on-chain messaging and settlement, aiming to streamline cross-border payments and reduce legacy friction. Linea, chosen for its zk-rollup tech, offers low-cost, high-speed transactions while maintaining Ethereum-level security and privacy, reinforcing Ethereum’s role in institutional finance.

Read more at Yahoo Finance: Chainlink and Swift Enable Banks to Access Blockchains Without Infrastructure Upgrades