UBS, Chainlink, and DigiFT Team Up to Automate Tokenized Fund Operations in Hong Kong

DigiFT, Chainlink, and UBS are teaming up to automate tokenized fund operations in Hong Kong. DigiFT will collect investor orders through regulated smart contracts, while 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. The project aims to reduce manual errors and unlock cost savings in the global asset management industry, valued at $132 trillion.

In a significant move towards integrating blockchain technology with traditional finance, DigiFT, Chainlink, and UBS have announced a strategic partnership to automate tokenized fund operations in Hong Kong. The collaboration is part of the Hong Kong government’s Cyberport program, which aims to promote blockchain adoption and digital asset infrastructure [1].

DigiFT, a regulated Real World Asset (RWA) exchange, will collect investor orders through regulated smart contracts. UBS, one of the world’s largest wealth management firms with $5.9 trillion in assets under management, will provide the tokenized funds and smart contracts that hold and manage the assets. Chainlink, the top decentralized oracle network, will execute fund operations such as issuance, redemption, and lifecycle management across blockchains using its Digital Transfer Agent (DTA) framework [1].

The partnership brings a blockchain-based workflow for tokenized products. Investors can place buy, sell, or redemption orders via DigiFT’s regulated distributor smart contracts. Chainlink’s DTA framework executes these orders automatically and records the transactions on-chain. This automation reduces manual errors, speeds up operations, and enhances transparency in recording all activities [1].

The initiative is under Hong Kong’s Blockchain & Digital Asset Pilot Subsidy Scheme, designed to encourage regulated blockchain solutions and make Hong Kong a leading hub for digital assets. Kevin Loo, CEO of DigiFT Hong Kong, emphasized the importance of developing long-term infrastructure that satisfies institutional standards and supports tokenized finance with regulatory compliance [1].

This collaboration could revolutionize asset management operations by reducing friction in operations, shortening processing times, and reducing costs. By automating fund operations on-chain, investors gain increased transparency and confidence in tokenized products. The blockchain-agnostic nature of Chainlink’s DTA framework opens up possibilities for global adoption and greater efficiency in cross-border tokenized asset management [1].

Operating within a regulatory framework supported by the government ensures compliance and provides a blueprint for future blockchain-finance collaborations. The initiative showcases the increasing institutional acceptance of blockchain technology and the advantages of integrating decentralized infrastructure with conventional finance know-how [1].

References:
[1] CoinFomania. (n.d.). Chainlink, UBS, and DigiFT team up to automate tokenized fund operations under Hong Kong Cyberport program. Retrieved from https://coinfomania.com/chainlink-ubs-digift-tokenized-funds/