UBS brings fund redemptions onchain in live Chainlink test

UBS executed the first live, in-production transaction for a tokenized money market fund.

The end-to-end workflow leveraged Chainlink’s infrastructure to process subscription and redemption orders directly on the Ethereum blockchain.
Summary

• UBS completed the first live onchain subscription and redemption of a tokenized money market fund using Chainlink’s infrastructure on Ethereum.
• The transaction utilized Chainlink’s Digital Transfer Agent standard to automate fund operations from order to settlement.

UBS pilots new model for tokenized fund

According to a press release dated Nov. 4, the Swiss banking firm, in collaboration with oracle network Chainlink and onchain exchange DigiFT, successfully processed the first live subscription and redemption of its tokenized UBS USD Money Market Fund (uMINT).

The UBS team noted that the transaction leveraged Chainlink’s Digital Transfer Agent standard on Ethereum to create a complete, automated workflow, moving a fund’s core operational mechanics onchain for the first time in a production environment.

According to UBS, the transaction demonstrates that tokenized fund operations can be executed entirely onchain while maintaining institutional standards for compliance and security. The transaction covered the critical stages of the fund lifecycle, including order taking, execution, settlement, and crucially, the synchronization of this data across both onchain and off-chain systems.

By utilizing Chainlink’s DTA standard, the process created a seamless bridge between UBS’s traditional internal systems and the Ethereum blockchain, with DigiFT acting as the authorized on-chain distributor to facilitate the transaction.

“This transaction represents a key milestone in how smart contract-based technologies and technical standards enhance fund operations and the investor experience. As the industry continues to embrace tokenized finance, this achievement illustrates how these innovations drive greater operational efficiencies and new possibilities for product composability,” Mike Dargan, Group Chief Operations and Technology Officer at UBS, said.

The test is a core initiative of UBS Tokenize, the bank’s in-house service for developing blockchain-based financial products. UBS Tokenize focuses on the tokenization of real-world assets, such as bonds, funds, and structured products, and manages the entire asset lifecycle from origination and issuance to distribution and custody.

The move is a strategic play for UBS, a global wealth manager overseeing $6.9 trillion in invested assets, to solidify its position at the forefront of institutional digital asset adoption.