A new collaboration involving Chainlink Labs, UBS Asset Management, and DigiFT is set to transform the creation and management of investment funds. The announcement made on September 11 reveals that these firms are developing an automated framework for tokenized products under Hong Kong’s Cyberport program. This initiative is part of the Cyberport Blockchain & Digital Asset Pilot Subsidy Scheme, a government-supported endeavor aimed at promoting Web3 experimentation in the region. The scheme not only provides funding but also offers a regulatory sandbox conducive to projects that might pave the way for wider adoption.
Henry Zhang, founder of DigiFT, emphasized the importance of Cyberport in Hong Kong’s digital transformation, stating, “Through this project, we are combining institutional partners, regulated infrastructure, and blockchain technology to build the next chapter of tokenized fund distribution.”
The focus of this initiative is to replace manual processes in fund operations with automation via blockchain technology. The new system is anticipated to minimize errors, streamline transfers, and reduce costs throughout the $132 trillion global asset management sector. By embedding smart contracts in each phase of the process—from issuance to redemption—the collaboration aims to enhance efficiency significantly.
UBS will introduce its proprietary UBS Tokenize platform, while Chainlink will contribute its Digital Transfer Agent, designed to validate and record transactions on-chain. DigiFT, which holds licenses in both Singapore and Hong Kong, will offer a regulated distribution channel for these tokenized funds. This innovative setup allows investors to execute orders and withdrawals through smart contracts, automatically triggering necessary actions on UBS’s tokenized funds.
Fernando Vazquez from Chainlink Labs characterized the project as groundbreaking for the industry. He pointed out that the integration demonstrates a feasible way to automate fund issuance and lifecycle management while maintaining compliance and transparency within Hong Kong’s financial system. According to Vazquez, this framework exemplifies what future capital markets may resemble as blockchain technology continues to be integrated into their operations.
If this collaboration succeeds, it could expedite the transition of tokenized financial products from pilot programs to widely accepted investment offerings, marking a significant step toward the future of asset management.
