UBS and DigiFT Tokenize Funds—Chainlink Powers the Future of Institutional Finance

The launch of Chainlink Tokenized Funds marks a pivotal moment in the evolution of on-chain finance, as it introduces the first institutional-grade tokenized funds on the blockchain, in collaboration with UBS and DigiFT. These funds are built on Chainlink’s Price Feed infrastructure and Chainlink Functions, offering real-time pricing and execution capabilities. The initiative aims to bridge traditional finance (TradFi) with decentralized finance (DeFi) by enabling institutional investors to access tokenized assets with transparency, security, and compliance.

This development underscores a growing trend of traditional financial institutions embracing blockchain technology to streamline operations and expand access to alternative investment vehicles. UBS, one of the world’s largest asset managers, has taken a proactive step by co-developing these funds with DigiFT, a Swiss asset tokenization company. The partnership aims to leverage UBS’s asset management expertise and DigiFT’s tokenization platform, combined with Chainlink’s smart contract infrastructure, to create a new class of digital assets that are programmable and governed by real-time market data.

Tokenized funds represent a departure from conventional investment structures by enabling fractional ownership and 24/7 trading of previously illiquid or high-barrier-to-entry assets. Through the use of tokenized shares on blockchain networks, investors can access a broader range of asset classes while benefiting from enhanced liquidity and reduced settlement times. Chainlink’s role in this process is critical, as its oracle technology ensures the accuracy and reliability of the data feeds used to price and execute trades in real time.

The collaboration between Chainlink, UBS, and DigiFT is expected to set a precedent for future on-chain financial products. Analysts suggest that tokenized funds could serve as a gateway for institutional adoption of blockchain-based assets, particularly as regulatory frameworks evolve to accommodate digital securities. By integrating traditional financial instruments with blockchain infrastructure, the initiative addresses longstanding concerns regarding transparency and security in asset management.

Early indicators suggest strong investor interest in tokenized funds, with UBS and DigiFT reporting pre-launch engagement from a variety of institutional clients. The funds are being designed to meet the compliance standards of multiple jurisdictions, including Switzerland, and may expand to other regions in the future. As tokenization gains traction, the ability to manage and trade financial assets in real time using on-chain infrastructure is expected to redefine how capital is allocated in both traditional and digital markets.