Chainlink and Swift Launch ‘Plug-and-Play’ Blockchain Solution for Banks

Chainlink has partnered with Swift to launch a technical framework that enables banks to access blockchain without the need to upgrade infrastructure or overhaul legacy processes.

The initiative connects Swift’s global messaging system network with Chainlink’s Runtime Environment (CRE), which allows banks to manage digital asset workflows using existing infrastructure.

In a pilot with UBS Tokenize, the tokenization arm of UBS, Chainlink, and Swift showed how banks can use ISO 20022, the global standard for financial messaging, to initiate blockchain-based transactions.

UBS initiated the process by sending standardized messages through Swift. These were processed by CRE, which activated subscription and redemption via Chainlink’s Digital Transfer Agent.

The process enables institutions to connect to blockchain networks using their existing systems, thereby eliminating the need for new identity, key management, or settlement tools.

The aim is to reduce friction, boost automation, and expand blockchain use without forcing traditional finance to overhaul its infrastructure.

Chainlink describes the model as “plug-and-play”  as it provides global banks with access to blockchain without the cost and complexity of full system replacements.

The collaboration also seeks to highlight how blockchain can streamline traditional financial processes and pave the way for wider adoption of tokenized assets.

The initiative extends work first carried out in Project Guardian in November 2024, which was a Monetary Authority of Singapore pilot where Chainlink, Swift, and UBS tested tokenized asset settlement with off-chain cash transfers.

However, the new phase introduces interoperability, which allows on-chain events to be triggered directly from traditional messaging rails. This seeks to address a major hurdle in institutional adoption of tokenized finance.