UBS & Chainlink Launch On-Chain Tokenized Fund Redemption

Published: 2025-11-04 15:42:40 |

UBS has completed the industry’s first live onchain tokenized fund redemption on the Ethereum blockchain. The bank used Chainlink’s Digital Transfer Agent standard and Cross-Chain Interoperability Protocol, with DigiFT as the on-chain distributor and SWIFT messaging under ISO 20022. UBS Tokenize automated order-taking, execution, settlement, and data synchronization between on-chain and legacy systems while meeting institutional compliance standards. This onchain tokenized fund redemption for the UBS USD Money Market Investment Fund marks a major milestone for the $100 trillion global fund industry. It highlights tokenized finance’s potential to enhance operational efficiency and future DeFi composability in institutional asset management.

Bullish

Onchain tokenized fund redemption demonstrates real-world institutional use of Ethereum and Chainlink. By automating order-taking, execution, and settlement via smart contracts, the transaction reduces friction and operational costs. This pilot underlines growing demand for tokenized finance on Ethereum, likely increasing network throughput and oracle service usage. In the short term, traders may see increased on-chain activity boosting ETH demand. Over the long term, institutional integration could drive sustained growth in Ethereum and Chainlink ecosystems.