Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Journalist
Tanzeel Akhtar
Journalist
Tanzeel Akhtar
share
UBS investment bank announced the completion of its first end-to-end tokenized fund transaction using the Chain link Digital Transfer Agent (DTA) technical standard.
This latest development from UBS shows the continued integration of blockchain technology into institutional financial operations. Last November, UBS, Swift, and Chainlink complete a pilot project which allows the liquidation of subscription of tokenized funds and redemptions using the Swift network.
UBS Tokenize and DigiFT Advance On-Chain Funds Operations
The live transaction was executed through UBS Tokenize, the bank’s digital asset initiative, in collaboration with DigiFT, a regulated decentralized exchange for real-world assets.
Together, they demonstrated how fund operations – including order, execution, settlement and data synchronization – can be seamlessly automated on blockchain platforms.
The transaction involved UBS USD Money Market Investment Fund Token (uMINT)a money market investment built on the Ethereum distributed ledger technology.
Using the Chainlink DTA standard, DigiFT acted as the fund distributor on the chain, successfully completing a subscription and redemption request for uMINT. This demonstration represents the first proof of concept in production for the automation of fund life cycles entirely on the chain.
Efficiency, transparency and real-time reconciliation
The new tokenized fund workflow provides a secure, comprehensive and scalable model for financial institutions to handle real-time investment fund operations. By standardizing communication between on-chain and off-chain systems, the DTA protocol ensures seamless reconciliation, transparency and operational efficiency.
“This transaction represents a key milestone in how smart contract-based technologies and technical standards will improve fund operations and the investor experience,” said Mike Dargan, Chief Operations and Technology Officer of UBS.
“Through our UBS Tokenize initiative, we are committed to fostering innovation and applying our deep expertise to support the development of digital strategies and products that meet the evolving needs of our clients,” adds Dargan.
Institutional Grade Blockchain Integration
“This industry milestone with UBS and DigiFT shows how Chainlink enables secure, compliant and scalable end-to-end workflows for tokenized assets, setting a new benchmark for on-chain institutional finance,” said Sergey Nazarov, Co-Founder of Chainlink.
“As the authorized distributor of funds on the chain for uMINT, we have demonstrated how fund operations can be executed and reconciled on the chain with real-time visibility. Leveraging the Chainlink DTA technical standard enables subscription and redemption workflows directly integrated with institutional custody,” said Henry Zhang, Founder and CEO of DigiFT Group.
Establishing a Benchmark for Tokenized Institutional Finance
UBS’s execution of the first tokenized fund transaction marks a breakthrough in the digital transformation of capital markets.
By integrating Chainlink’s standardized infrastructure and DigiFT’s on-chain fund distribution, UBS said it has demonstrated that regulated institutions can operate efficiently, transparently and securely in blockchain ecosystems, paving the way for a new era of tokenized finance.
UBS USD Money Market Investment Fund Token Price Action
The UBS USD Money Market Investment Fund Token (uMINT), a blockchain-based version of the UBS USD Money Market Fund, is emerging as a model for how traditional financial products can transition into the digital asset era.
According to the latest data from CoinGecko, uMINT is trading at $104.11, up 3.8% over the past year, reflecting the stable performance characteristics typical of money market instruments.
