DigiFT, a licensed exchange specializing in institutional-grade tokenized real-world assets (RWAs), has announced an important development in collaboration with Chainlink, recognized as the industry-standard oracle platform, and UBS Tokenize, the in-house tokenization service of UBS. This joint initiative has received approval under the Cyberport Blockchain & Digital Asset Pilot Subsidy Scheme, marking a significant step in the progression of tokenization in the financial sector.
Tokenization holds the potential to revolutionize the $132 trillion global asset management industry; however, simply converting assets onto blockchain does not fully harness the advantages of the technology. To capitalize on the speed, efficiency, and accessibility offered by blockchain, DigiFT, Chainlink, and UBS are working together to create a regulated blockchain-based infrastructure. This system aims to automate and streamline the distribution, settlement, and lifecycle management of tokenized products. The objective is to minimize manual errors while unlocking substantial cost savings.
In the workflow established by the project, investors will be able to submit subscription and redemption orders for UBS’s tokenized products via DigiFT’s regulated distributor smart contracts. These orders are processed by Chainlink’s Digital Transfer Agent smart contracts and recorded on-chain. This series of operations will trigger the necessary issuance, redemption, and lifecycle activities in the UBS tokenized product smart contracts, all of which will adhere to the Capital Markets Technology Association (CMTA) Token standards.
Henry Zhang, Founder and Group CEO of DigiFT, emphasized the transformative potential of the project. “Cyberport is at the heart of Hong Kong’s digital transformation. By collaborating with institutional partners and regulated infrastructure, we are setting the stage for the next chapter in tokenized fund distribution. This initiative is paving the way for a truly open economy where financial products can seamlessly interoperate across borders and platforms.”
Fernando Vazquez, President of Capital Markets at Chainlink Labs, also highlighted the significance of this endeavor. By incorporating DigiFT’s regulated smart contracts and UBS’s tokenized product smart contracts along with Chainlink’s Digital Transfer Agent framework, the initiative is establishing a new model for institutional fund distribution. This project represents a key milestone in automating fund issuance and lifecycle management, ensuring secure, transparent, and compliant smart contract workflows within the Hong Kong regulatory landscape.
The approval of this proposal underscores DigiFT’s advantageous position as a dual-licensed exchange for tokenized RWAs in Singapore and Hong Kong—two of Asia’s most advanced regulatory environments. Following DigiFT’s recent licensing by the Hong Kong Securities and Futures Commission (SFC), the collaboration with Chainlink is set to expand their presence in this pivotal market.
Kevin Loo, Hong Kong CEO of DigiFT, noted that Hong Kong is rapidly positioning itself as a leading center for regulated digital assets. “This project’s selection under the Blockchain & Digital Asset Pilot Subsidy Scheme reflects our commitment to building long-term infrastructure in the city. Collaborating with UBS and Chainlink, we are crafting solutions that meet institutional standards while bolstering Hong Kong’s role as a global hub for tokenized finance.”
Chainlink’s Digital Transfer Agent (DTA) framework enhances cross-blockchain connectivity and serves as a foundation for broader adoption of tokenized products compliant with Hong Kong regulations. As part of the initiative, DigiFT is actively validating the underlying infrastructure and providing commercial feedback to ensure that the system aligns with the compliance, scalability, and interoperability requirements of Hong Kong’s financial institutions.
