UBS said it completed the first on-chain redemption of a tokenized fund in a live trade using Chainlink’s Digital Transfer Agent (DTA), highlighting how blockchain infrastructure is beginning to align with the $100 trillion global funds industry.
The transaction included the UBS USD Money Market Investment Fund Token (uMINT), a tokenized money market fund built on Ethereum.
DigiFT acted as an on-chain distributor and settled redemptions using Chainlink’s DTA standard. According to a press release shared with CoinDesk, UBS’s internal systems initiated the process, which was then executed by Chainlink’s infrastructure.
Mike Dargan, Group Chief Operating Technology Officer at UBS, said: “This transaction marks an important milestone in terms of how smart contract-based technology and technical standards can enhance fund operations and the investor experience.”
“As the industry continues to embrace tokenized finance, this achievement demonstrates how these innovations drive new possibilities for increased operational efficiency and product configurability.”
The transaction is part of a broader initiative by UBS Tokenize, the bank’s internal platform for blockchain-based financial products.
The technology aims to reduce operational complexity and processing time for the $100 trillion global funds industry by automating key functions such as order entry, execution, and settlement across digital and traditional systems.
This follows a recent pilot in which Chainlink connected existing banking systems to blockchain through the financial messaging network Swift.
This setup used Chainlink’s cross-chain interoperability protocol and runtime environment to process financial transactions using ISO 20022 messages, allowing banks to access blockchain rails without overhauling their legacy infrastructure.
