UBS, Chainlink Execute First Onchain Tokenized Fund Redemption in $100T Market

UBS said it 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 starting to interface with the $100 trillion global funds industry.

The transaction involved the tokenized money market fund UBS USD Money Market Investment Fund Token (uMINT) built on Ethereum.

DigiFT served as an onchain distributor, setting up redemption 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 enhance fund operations and the investor experience,” said Mike Dargan, UBS group director.

“As the industry continues to embrace tokenized finance, this success illustrates how these innovations are driving greater operational efficiency and new possibilities for product composability.”

The transaction is part of a wider initiative by UBS Tokenize, the bank’s internal platform for blockchain-based financial products.

By automating key functions such as order taking, fulfillment and settlement in digital and traditional systems, the technology aims to reduce operational complexity and processing time $100 trillion global fund industry.

It follows a recent pilot where Chainlink connected existing banking systems to blockchains via Swift, the financial messaging network.

This setup used the Cross-Chain Interoperability Protocol and the Chainlink Runtime Environment to process fund transactions using ISO 20022 messages, allowing banks to access blockchain binaries without overhauling legacy infrastructure.