Milestone marks a breakthrough for blockchain integration in the $100 trillion global fund industry
UBS has successfully executed the first onchain redemption of a tokenized investment fund, using Chainlink’s Digital Transfer Agent (DTA) standard. The transaction, conducted on Ethereum, marks a pivotal step toward merging traditional finance with blockchain infrastructure — a move that could transform how global funds operate.
The live transaction involved the UBS USD Money Market Investment Fund Token (uMINT), a tokenized version of a money market fund designed to bring greater transparency and efficiency to fund operations. The redemption was distributed and settled onchain through DigiFT, which acted as the onchain distributor using Chainlink’s technology.
“This transaction represents a key milestone in how smart contract-based technologies enhance fund operations and improve the investor experience,” said Mike Dargan, UBS Group Chief Operating and Technology Officer. “As the industry embraces tokenized finance, we’re seeing how these innovations drive operational efficiency and enable new levels of product composability.”
UBS’s blockchain division, UBS Tokenize, led the initiative as part of the bank’s long-term strategy to automate fund-related processes such as order-taking, execution, and settlement. The system aims to reduce processing time and operational complexity across both traditional and digital infrastructures — an important advancement for a global fund industry estimated at over $100 trillion.
“By integrating Chainlink’s DTA standard, UBS is proving that blockchain rails can work alongside legacy systems without disrupting core financial workflows,” said a financial technology analyst familiar with the pilot.
The achievement follows UBS’s earlier experiments connecting traditional banking systems to blockchains through Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and the Swift network, enabling financial institutions to process fund transactions using ISO 20022 messages.
The successful redemption signals a major step toward full-scale tokenization in asset management — illustrating how onchain systems can enhance efficiency, transparency, and interoperability across global finance.
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