Chainlink, UBS, and DigiFT have launched a partnership to streamline tokenized fund operations in Hong Kong. The collaboration falls under the Cyberport Blockchain and Digital Asset Pilot Subsidy Scheme. The project focuses on automating complex financial processes using blockchain technology.
UBS, the world’s largest wealth manager, has $5.9 trillion worth of client assets under its management. It will employ this system for the management of tokenized offerings presented through DigiFT’s regulated exchange.
Chainlink will provide the digital infrastructure needed to automate and make these processes transparent. Through the partnership, Hong Kong will be a hub for regulated digital assets, offering institutional-grade solutions for the financial sector.
Chainlink digital transfer agent powers tokenized funds
At the heart of the project is Chainlink’s Digital Transfer Agent system. It employs the use of smart contracts for the entire lifecycle management of the funds. The process of issuing, redemption, and transfer is no longer reliant on human intervention. This reduces error, lowers the cost, and facilitates faster settlement.
Investors will be interacting with the smart contract dispenser of DigiFT. Their subscription or redemption will be automatically carried out. Chainlink’s system then triggers corresponding actions within the tokenised product contracts of UBS.
Blockchain-agnostic system architecture allows it to function over a variety of networks. That allows institutional players to embrace tokenized solutions without becoming tied to a single blockchain.
Tokenized assets gain momentum in global finance
Tokenized asset growth is an indication of broader global finance trends. Asset managers seek scale and efficiency among an estimated $132 trillion market. Tokenization provides efficiency and clarity of operations, which aligns with institutional interest.
Chainlink is constantly expanding its input within the same ecosystem. Besides the project within Hong Kong, the system enables interoperability and real-time data transmission across chains. Some of the recent integration projects include Sei Network for market data for more than 300 assets, and CCIP launch on Aptos for token transfers over more than 60 blockchains.
The company’s tech also forms the basis of other players’ solutions. They include cross-chain borrowing of Shiba Inu and transferring WLFI governance tokens among Ethereum, Solana, and BNB Chain.
Through the joining of UBS’s global reach, the regulatory expertise of DigiFT, and Chainlink’s automation solutions, the collaboration is a significant step forward for institutional tokenized finance. It also highlights the aim of Hong Kong to be a leader for the next generation of blockchain-powered financial innovations.
