Chainlink, UBS, and DigiFT Revolutionize Tokenized Funds in Hong Kong

By: Isha Das

Chainlink Labs, UBS Asset Management, and DigiFT have announced a groundbreaking partnership aimed at transforming the creation and management of investment funds through blockchain technology. Leveraging Hong Kong’s Cyberport program, this collaboration seeks to automate and streamline various fund operations by integrating smart contracts, reducing manual errors, and cutting costs. This initiative is supported by the Cyberport Blockchain & Digital Asset Pilot Subsidy Scheme, which provides both funding and a regulatory framework conducive to Web3 innovations.

Henry Zhang, founder of DigiFT, emphasized Cyberport’s central role in Hong Kong’s digital shift, underscoring the technological and institutional aspects that this project brings together. Scheduled to replace traditional practices, the collaboration aims to embed automation into fund lifecycle processes, offering a novel operational model in the $132 trillion global asset management sector. UBS plans to contribute its proprietary UBS Tokenize platform, while Chainlink will provide its Digital Transfer Agent tool, both working in concert to enable seamless investor interactions through blockchain-powered smart contracts.

Chainlink executive Fernando Vazquez highlighted the significance of the project as a template for future capital markets. The integration not only aims to enhance transparency and regulatory compliance but also exemplifies blockchain's potential to revamp financial systems comprehensively. With the successful realization of this pilot, the partners hope to foster the proliferation of tokenized financial products from experimental phases to mainstream offerings.

This collaboration not only positions itself as a pioneering step in the utilization of blockchain for automating fund operations but also hints at wider implications for Real World Asset (RWA) tokenization within Hong Kong. The initiative is poised to eliminate human error in distribution, settlement, and management, potentially influencing how RWA tokenization is approached across other financial hubs around the world.