Digift, Chainlink and UBS work together 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 tokenized funds and smart contracts that contain and manage the assets.
- Chainlink will carry out fund activities, such as issue, repayment and life cycle management about block chains using its DTA framework.
Digift, a recognized exchange for tokenized assets of institutional quality, has to collaborate With Chainlink (Link), the Industrie Standard Oracle platform and UBS-Tokenize, the internal tokenization service of UBS, to build a blockchain-based system for managing Tokenized funds.
The new platform will automate the business fund activities – including subscriptions, repayments and life cycle management – that use smart contracts, to reduce manual errors and unlock considerable cost savings in the global assets management industry ($ 132 trillion).
In the workflow of the project, investors will submit orders for the UBS tokenized products via the regulated smart contracts of Digift. The framework of Digital Transfer agent from Chainlink will then process these orders and cause the corresponding issue, repayment or other fund management actions on the Tokenized Fund contracts of UBS, all safely on the chain.
The DTA framework connects to each blockchain, not only the only thing that uses UBS, while Digift validates the infrastructure and gives commercial feedback to ensure compliance, scalability and interoperability for Hong Kong’s financial institutions.
This project is part of that of Hong Kong Cyberport Blockchain & Digital Asset Pilot Subsidy SchemeAn initiative of the Cyberport by Hong Kong, aimed at accelerating the development and real-world application of blockchain and web3 technologies. According to this program, eligible entities can apply for subsidies that cover up to 80% of the project costs, with a maximum grant of HK $ 500,000 per project, paid in two installments.
“Hong Kong comes quickly as a leading center for regulated digital assets, and the selection of our project under the blockchain & digit asset pilot subsidy control reflects the dedication of Digift to build long-term infrastructure in the city,” said Kevin Loo, CEO of Digift.
Apart from his initiative with Digift and UBS, Chainlink stands up as a leading infrastructure for automating fund activities and providing safe, verifiable information about the chains.
Earlier this year, Libre Capital adopted the standards of Chainlink, including the interoperability protocol and the proof of reserve, to Tokenize that offer exposure to investments of BlackRock and Laser Digital.
In addition, Chainlink’s DTA framework is used in other institutional initiatives, such as Fidelity International’s partnership With Sygnum to bring NAV data on-chain for its $ 6.9 billion institutional liquidity fund on the ZKSync blockchain.