UBS has completed the first-ever on-chain redemption of a tokenized fund through Chainlink’s Digital Transfer Agent (DTA), marking a major advancement in blockchain integration within the $100 trillion global fund industry. The live transaction involved UBS’s tokenized money market fund, the UBS USD Money Market Investment Fund Token (uMINT), which operates on the Ethereum blockchain.
In the process, DigiFT acted as the on-chain distributor, settling the redemption using Chainlink’s DTA standard. UBS initiated the redemption internally, with Chainlink’s infrastructure executing the operation seamlessly. According to a statement shared with CoinDesk, the move demonstrates how blockchain and smart contract-based systems can streamline traditional financial operations.
Mike Dargan, UBS Group’s Chief Operating and Technology Officer, described the transaction as a “key milestone” that highlights how smart contract technology enhances fund operations and improves investor experiences. He added that tokenized finance is driving operational efficiency and enabling new opportunities for product innovation.
This development is part of UBS Tokenize, the bank’s dedicated platform for blockchain-based financial products. By automating critical processes — such as order-taking, execution, and settlement — UBS aims to reduce operational complexity and transaction processing time across digital and traditional systems.
The on-chain redemption builds upon earlier collaborations where Chainlink linked existing banking systems to blockchain networks via Swift’s financial messaging infrastructure. That initiative leveraged Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and Runtime Environment to process fund transactions using ISO 20022 messaging standards. This approach allows banks to interact with blockchain networks without needing to overhaul their legacy infrastructure.
UBS’s achievement illustrates a pivotal step toward mainstream adoption of blockchain technology in the global fund management sector, signaling a future where tokenized finance and interoperability become core to traditional financial ecosystems.
