DigiFT, Chainlink, and UBS are teaming up to automate the management of tokenized funds in Hong Kong.
Summary
- DigiFT will collect investor orders through regulated smart contracts and validate the infrastructure.
- UBS will provide the tokenized funds and smart contracts that hold and manage the assets.
- Chainlink will execute fund operations such as issuance, redemption, and lifecycle management across blockchains using its DTA framework.
DigiFT, a licensed exchange for institutional-grade tokenized assets, has teamed up with Chainlink (LINK), the industry-standard oracle platform, and UBS Tokenize, UBS’s in-house tokenization service, to build a blockchain-based system for managing tokenized funds.
The new platform will automate key fund operations—including subscriptions, redemptions, and lifecycle management—using smart contracts, helping to reduce manual errors and unlock significant cost savings in the global asset management industry ($132 trillion).
In the project’s workflow, investors will submit orders for UBS’s tokenized products through DigiFT’s regulated smart contracts. Chainlink’s Digital Transfer Agent framework will then process these orders and trigger the corresponding issuance, redemption, or other fund management actions on UBS’s tokenized fund contracts, all recorded securely on-chain.
The DTA framework connects across any blockchain, not just the one UBS uses, while DigiFT is validating the infrastructure and providing commercial feedback to ensure compliance, scalability, and interoperability for Hong Kong’s financial institutions.
This project is part of Hong Kong’s Cyberport Blockchain & Digital Asset Pilot Subsidy Scheme, an initiative by Hong Kong’s Cyberport aimed at accelerating the development and real-world application of blockchain and Web3 technologies. Under this program, eligible entities can apply for subsidies covering up to 80% of project costs, with a maximum grant of HK$500,000 per project, disbursed in two installments.
“Hong Kong is rapidly emerging as a leading center for regulated digital assets, and our project’s selection under the Blockchain & Digital Asset Pilot Subsidy Scheme reflects DigiFT’s commitment to building long-term infrastructure in the city,” said Kevin Loo, Hong Kong CEO of DigiFT.
Apart from its initiative with DigiFT and UBS, Chainlink is emerging as a leading infrastructure for automating fund operations and providing secure, verifiable on-chain data.
Earlier this year, Libre Capital adopted Chainlink’s standards, including the Cross-Chain Interoperability Protocol and Proof of Reserve, to tokenize funds offering exposure to investments from BlackRock and Laser Digital.
Additionally, Chainlink’s DTA framework has been used in other institutional initiatives, like Fidelity International’s partnership with Sygnum to bring NAV data on-chain for its $6.9 billion Institutional Liquidity Fund on the zkSync blockchain.