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A new initiative by Chainlink, DigiFT, and UBS Tokenize has secured approval through the Hong Kong Cyberport Blockchain and Digital Asset Pilot Subsidy Scheme. The move comes in an effort to modernize the flow of tokenized funds, and their management throughout global markets.
A Look At Chainlink, UBS Tokenize, DigiFT’s Partnership
The partnership is meant to deal with one of the most urgent issues in asset tokenization: the transition between mere on-chain issuance and full automated lifecycle management. As the global asset management industry is estimated to have a value of about $132 trillion, the project will help mitigate inefficiencies as well as minimize the occurrence of operational mistakes and provide infrastructure that is internationally recognized to meet regulatory bases.
At the heart of the pilot, investors will make subscription and redemption demands of UBS tokenized offerings using the contractual relations regulated by DigiFT under the distributor contracts. Chainlink will process those transactions using the Digital Transfer Agent (DTA) smart contracts that will then cause the respective action to occur on the tokenized fund contracts at UBS: issuance, redemption, or other lifecycle process activities. This framework has been based on the standards of the Capital Markets Technology Association (CMTA).
Founder and Group CEO of DigiFT, Henry Zhang, remarked that the partnership was a major milestone in regulated funds distribution in Asia. He said,
“Through this project, we are combining institutional partners, regulated infrastructure, and blockchain technology to build the next chapter of tokenized fund distribution—one that moves us closer to a truly open economy where financial products can interoperate seamlessly across borders and platforms.”
Moreover, it’s worth noting that Chainlink’s technology is the glue that binds the participants together by facilitating auditable workflows in a secure way. According to Fernando Vazquez, President of Capital Markets at Chainlink Labs, “By integrating DigiFT’s regulated smart contracts and UBS’s tokenized product smart contracts with Chainlink’s Digital Transfer Agent framework, we’re enabling a transformative new model for institutional fund distribution.”
What Does Each Partner Bring To The Table?
The selection of the pilot on the subsidy program of Cyberport strengthens the growing role of DigiFT as a regulated market of real-world asset tokens. DigiFT has already acquired a license in Singapore, and more recently by Hong Kong Securities and Futures Commission. Thus, it is leveraging the project to challenge infrastructure on compliance and scalability with regional financial institutions.
In the case of UBS Tokenize, the tokenization department of the bank, the partnership shows how blockchain infrastructure can help institutional requirements in the management of funds. Meanwhile, Hong Kong regulatory support reflects the increasing the city’s foothold in the digital asset industry. Here, policymakers are trying to make the area a center of safe and clear tokenized finance.
The DTA framework of Chainlink also preconditions interoperability of the blockchains, where a tokenized product can be introduced in a regulated way and made to be adopted globally.
