UBS, Chainlink and DigiFT have launched a blockchain-based project in Hong Kong to automate key operations for tokenized funds through smart contracts and Chainlink’s Digital Transfer Agent (DTA) framework.
Key Takeaways:
- The collaboration uses smart contracts via DigiFT to accept investor orders, which Chainlink’s DTA framework then processes to trigger issuance, redemption, and other operations on UBS’s tokenized funds.
- The project is part of Hong Kong’s Cyberport Blockchain & Digital Asset Pilot Subsidy Scheme, which subsidizes up to 80% of project costs (max HK$500,000) to promote blockchain and Web3 use by financial institutions.
- DigiFT ensures regulatory compliance, Chainlink delivers cross-chain smart contract execution, and UBS contributes the tokenized fund products.
DigiFT, an exchange licensed to deal with tokenized real-world assets, UBS Tokenize, and Chainlink Labs have announced a joint project to fully automate management of tokenized funds in Hong Kong. Under the workflow, investors will submit subscriptions or redemption orders via smart contracts regulated by DigiFT. These orders are then picked up by Chainlink’s Digital Transfer Agent (DTA) framework, which interfaces with UBS’s smart contracts to carry out asset issuance, redemptions, and other lifecycle events on-chain. UBS supplies the tokenized fund products themselves.
The collaboration was officially announced in Chainlink’s X account, highlighting their aim to “automate tokenized fund operations onchain” through the Cyberport program of the Hong Kong government, which encourages innovation in blockchain and digital asset infrastructure. That provides cost support to DigiFT, UBS, and Chainlink as they build the regulated infrastructure to handle compliance, scalability, and interoperability.
Industry leaders weigh in on blockchain integration
Fernando Vazquez, President, Capital Markets at Chainlink Labs, highlighted the significance of integrating regulated smart contracts and token standards, saying the project “is a major milestone for automating fund issuance and lifecycle management … paving the way for the next generation of capital markets.”
Meanwhile, Kevin Loo, Hong Kong CEO of DigiFT, emphasized that the initiative underscores “building long-term infrastructure in the city” and that the project reflects Hong Kong’s ambition establish itself as a leading hub for regulated digital assets.
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, Loo noted.
Chainlink (LINK) Holds Steady Amid Partnership News
As of writing (1:00PM UTC), Chainlink (LINK) is trading at approximately $23.66, showing a balanced movement over the past 24 hours with a modest 0.1% gain, according to real-time market data from TradingView. The token also logged intraday highs near $24.25 and lows at $23.27 as per CoinGecko.
Since breaking the story about the partnership, price action has shown stability with mild bullish sentiment. There has been no sudden jump (>10%) attributable directly to the partnership, but the announcement supports broader institutional interest in tokenization infrastructure, which may bolster demand for LINK and similar infrastructure tokens.
Outlook: Hong Kong as a testbed for tokenized funds
The partnership of UBS, Chainlink, and DigiFT could serve as a model for how regulated institutions adopt blockchain in capital markets. By streamlining subscriptions, redemptions, and compliance processes, the project positions Hong Kong as a leading hub for tokenized funds. The success of this project will depend on how efficiently the system performs in real-world conditions and how regulators respond to its framework. If the initiative shows signs of effectiveness, it could encourage wider adoption of tokenized financial products and reinforce blockchain’s role in reshaping global asset management.
Summary
Chainlink, UBS, and DigiFT have partnered in Hong Kong to automate tokenized fund operations using smart contracts and Chainlink’s Digital Transfer Agent (DTA) framework. The project, part of the city’s Cyberport Blockchain & Digital Asset Pilot Subsidy Scheme, aims to streamline fund issuance, redemptions, and compliance processes. DigiFT provides regulatory oversight, Chainlink powers cross-chain automation, and UBS delivers tokenized fund products. While LINK traded steady around $23.66, the collaboration strengthens Hong Kong’s position as a hub for regulated digital assets and highlights blockchain’s growing role in institutional finance.
