In a significant step towards the future of finance, Chainlink, UBS, and DigiFT have joined forces to create a regulated platform for automating tokenized fund management in Hong Kong. The initiative aims to innovate how real-world assets (RWAs) are managed through the use of a blockchain-based system, enhancing efficiency and transparency.
The partnership is backed by Hong Kong’s Cyberport Blockchain & Digital Asset Pilot Subsidy Scheme, showcasing the city’s commitment to becoming a global leader in regulated digital assets. With the global asset management sector valued at approximately $132 trillion, the implications of this project could be substantial, potentially reducing costs and errors in fund management significantly.
The new platform primarily targets the Greater China region, focusing on eliminating manual processes that currently burden investors and fund managers. By utilizing smart contracts, the platform will automate the lifecycle of tokenized funds from issuance to redemption. Investors will interact with UBS’s tokenized fund offerings through DigiFT’s regulated framework. Each action, from subscription orders to redemptions, will be executed via Chainlink’s Digital Transfer Agent (DTA), ensuring all transactions are securely recorded on-chain and compliant with global regulatory standards.
DigiFT’s founder, Henry Zhang, expressed optimism about the collaboration, stating, “Through this project, we are combining institutional partners, regulated infrastructure, and blockchain technology to build the next chapter of tokenized fund distribution.” This viewpoint underscores the collaborative effort to set new standards in capital markets.
The integration of Chainlink’s DTA for validating fund actions, DigiFT’s distribution capabilities approved by financial authorities, and UBS Tokenize for managing tokenized fund activities demonstrates a comprehensive approach aimed at streamlining operations while maintaining regulatory compliance. Kevin Loo, CEO of DigiFT, highlighted the initiative’s strategic significance, asserting that it not only meets institutional standards but also fortifies Hong Kong’s status as a global hub for tokenized finance.
Chainlink’s Capital Markets President, Fernando Vazquez, described the project as a “major milestone” for the industry, establishing a benchmark for transparent fund workflows under Hong Kong’s regulatory framework. The platform is designed to enable scalability and connectivity across multiple blockchains, potentially transforming how traditional finance interfaces with digital assets.
Industry observers have noted that this development represents a critical shift from theoretical applications of blockchain to practical, utility-driven implementations in finance. The collaboration between UBS, Chainlink, and DigiFT is expected to encourage further engagement from serious players in the financial sector, marking a transformative era for the interplay of traditional finance and cryptocurrency.
