DigiFT, Chainlink and UBS collaborate 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 store and manage the assets.
- Chainlink will perform fund operations such as issuance, redemption and lifecycle management on blockchains using the DTA framework.
DigiFT, a licensed exchange for institutional-grade tokenized assets, has done just that brought together 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, reducing manual errors and delivering significant cost savings across the global asset management industry ($132 trillion).
In the project’s workflow, investors will place orders for UBS’s tokenized products via 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 securely recorded on-chain.
The DTA framework connects to any blockchain, not just the one using UBS, while DigiFT validates the infrastructure and provides commercial feedback to ensure compliance, scalability and interoperability for Hong Kong’s financial institutions.
This project is part of Hong Kong Cyberport Blockchain & Digital Asset Pilot Subsidy Schemean initiative by Hong Kong-based Cyberport, aimed at accelerating the development and real-world application of blockchain and Web3 technologies. Under this program, eligible entities can apply for grants covering up to 80% of the project costs, with a maximum grant of HK$500,000 per project, paid in two installments.
“Hong Kong is rapidly developing as a leading center for regulated digital assets, and the selection of our project under the Blockchain & Digital Asset Pilot Subsidy Scheme reflects DigiFT’s commitment to building long-term infrastructure in the city,” said Kevin Loo, CEO of DigiFT in Hong Kong.
In addition to the initiative with DigiFT and UBS, Chainlink is emerging as a leading infrastructure for automating fund transactions and delivering secure, verifiable on-chain data.
Earlier this year, Libre Capital adopted Chainlink’s standards, including Cross-Chain Interoperability Protocol and Proof of Reserve, to tokenize funds that provide exposure to investments from BlackRock and Laser Digital.
Additionally, Chainlink’s DTA framework has been 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.