UBS said it has completed the first on-chain redemption of a tokenized fund using Chainlink’s digital transfer agent (DTA) in a live transaction that highlights how blockchain infrastructure is beginning to interface with the $100 trillion global funds industry.
The transaction involved tokenized money market fund UBS USD Money Market Investment Fund Token (uMINT) built on Ethereum.
DigiFT served as the onchain distributor, settling the buyout using Chainlink’s DTA standard. UBS’s internal systems initiated the process, which Chainlink’s infrastructure then executed, according to a press release shared with CoinDesk.
“This transaction represents a key milestone in how smart contract-based technologies and technical standards improve fund operations and the investor experience,” said Mike Dargan, Chief Operating and Technology Officer at UBS Group.
“As the industry continues to embrace tokenized finance, this achievement illustrates how these innovations are driving greater operational efficiencies and new possibilities for product composability.”
The transaction is part of a broader initiative by UBS Tokenize, the bank’s internal platform for blockchain-based financial products.
By automating key functions such as order taking, execution and settlement across digital and traditional systems, the technology aims to reduce operational complexity and processing time for the estimated $100 trillion global funds industry.
This follows a recent pilot in which Chainlink connected existing banking systems to blockchains through Swift, the financial messaging network.
This setup used Chainlink’s Cross-Chain Interoperability Protocol and execution environment to process funds transactions using ISO 20022 messages, allowing banks to access blockchain rails without overhauling existing infrastructure.
