Chainlink’s native token LINK experienced a notable surge, crossing the $24 mark and advancing 2.5% on Thursday. This uptick follows the announcement of a collaborative initiative involving Chainlink, DigiFT, and UBS. Together, these firms aim to automate the operations of tokenized funds in Hong Kong after gaining approval under the Cyberport Blockchain and Digital Asset Pilot Subsidy Scheme.
The partnership’s objective is to enhance the distribution, settlement, and management of tokenized financial products throughout their lifecycle. Currently, these processes are hindered by manual paperwork, which slows down transactions and elevates the risk of errors. By transitioning these functions to smart contracts, the initiative seeks to reduce costs and standardize operations within the fund management sector.
Within the new system, investors will place orders for UBS’s tokenized products via DigiFT’s regulated distributor smart contracts. Subsequently, Chainlink’s Digital Transfer Agent framework will handle the transactions, recording them on-chain and triggering issuance or redemption processes for UBS’s token contracts.
In addition to this strategic partnership, Chainlink has also unveiled its Cross-Chain Interoperability Protocol, extending its services to the Aptos blockchain. This development aims to enhance enterprise-grade connectivity solutions for decentralized finance applications and corporate treasury management.
From a technical perspective, Chainlink’s LINK has shown significant recovery, rebounding following a 20% decline since mid-August. According to CoinDesk Research’s technical analysis model, a volume-based support level has emerged at $23.60, fueled by sustained buying interest. This performance has outpaced the broader cryptocurrency market, where the CoinDesk 20 index experienced a 1.5% gain during the same timeframe.
