Switzerland's largest bank has executed what it calls a landmark blockchain-based fund transaction, though it acknowledges significant hurdles remain before widespread client adoption.
UBS Says Clients Need to See Utility After Tokenized Fund Transaction with Chainlink
5 November 2025 - 00:07 CET
By Giles Broom
UBS timed its announcement with the first day of Chainlink's SmartCon conference in New York on Tuesday. It’s the world's first live, end-to-end tokenized fund transaction using the Chainlink Digital Transfer Agent (DTA) technical standard, according to a company statement. The transaction covered the entire fund lifecycle—from subscription and redemption to settlement and data synchronization.
The technology
The bank's UBS Tokenize unit, working with blockchain platform DigiFT, processed the transaction involving the UBS USD Money Market Investment Fund Token (uMINT), a money market investment built on Ethereum distributed ledger technology.
UBS Tokenize functions as an internal service desk supporting multiple business divisions, from personal and corporate banking to asset and wealth management, helping them develop tokenized products for investors.
Laurens Schepens, UBS's tokenization and digital assets lead, described the process as wrapping a "space suit" around the entire fund transaction during his on-stage interview at the event.
Industry significance
The announcement carries weight given UBS's position in global finance. The bank oversees more than $6 trillion in assets worldwide and its home country accounts for one of the world's largest pension pots per capita. Its footprint expanded further following its acquisition in 2023-24 of collapsed rival Credit Suisse.
Sergey Nazarov, co-founder of Chainlink, called it an “industry milestone” that “demonstrates how traditional finance can transition into onchain environments with the reliability and efficiency the traditional industry requires.”
The project builds on earlier collaboration between UBS and Chainlink under the Monetary Authority of Singapore's Project Guardian initiative, which explores how regulated financial institutions can automate fund operations on blockchain while maintaining compliance and interoperability, among other wider cross-border workstreams.
Reality check
Despite the technical achievement, Schepens emphasized that widespread adoption depends on client demand. “It goes beyond experimentation. These are now real production trades,” he said. However, he noted that assets will only move toward blockchain “if the incentives are right” and clients see clear utility and advantages.
Most liquidity remains in traditional fund and payment systems, and UBS continues to foresee a hybrid approach between conventional and blockchain-based transactions. The bank is also exploring how stablecoins could make its product range “more interesting,” according to Schepens.
Broader industry movement
The announcement reflects a broader shift from experimental to production-stage blockchain implementations in traditional finance, though progress remains gradual. That a single transaction qualifies as a “milestone” underscores the current ambition level while customers and business partners still lack education and enthusiasm for new solutions.
Other major institutions are making similar moves. JPMorgan's asset and wealth management unit recently announced its first private fund tokenized solution through its Kinexys Fund Flow platform. In a transaction completed with Citco, the platform enabled a tri-party settlement between fund managers, transfer agents, and distributors, highlighting benefits including improved efficiency, distribution opportunities, and transparency, JPMorgan said last week.
