UBS Completes First On-Chain Redemption of Tokenized Fund Using Chainlink’s Digital Transfer Agent
UBS recently made history by completing the first on-chain redemption of a tokenized fund using Chainlink’s Digital Transfer Agent (DTA). This live transaction demonstrates how blockchain infrastructure is beginning to interact with the $100 trillion global fund industry.
The transaction involved the tokenized money market fund UBS USD Money Market Investment Fund Token (uMINT), which is built on Ethereum.
DigiFT acted as the on-chain distributor, facilitating the redemption using Chainlink’s DTA standard. UBS’ internal systems initiated the process, which Chainlink’s infrastructure executed seamlessly.
Mike Dargan, UBS’ group chief operating and technology officer, commented on the significance of the transaction, stating, “This transaction represents a key milestone in how smart contract-based technologies and technical standards enhance fund operations and the investor experience.”
UBS Tokenize, the bank’s in-house platform for blockchain-based financial products, spearheaded this initiative. By automating key functions such as order-taking, execution, and settlement across digital and traditional systems, the technology aims to streamline operations and reduce processing time in the global fund industry.
This milestone follows a recent pilot where Chainlink connected existing bank systems to blockchains via Swift, the financial messaging network. Using Chainlink’s Cross-Chain Interoperability Protocol and Runtime Environment, banks were able to process fund transactions using ISO 20022 messages, enabling access to blockchain rails without the need to overhaul legacy infrastructure.
