A collaboration between Chainlink, UBS, and DigiFT has resulted in the launch of automated, on-chain tokenized fund operations in Hong Kong. This initiative is part of Hong Kong's Cyberport Blockchain & Digital Asset Pilot Subsidy Scheme. The project seeks to move beyond simply issuing assets on-chain by creating a regulated framework for automating subscription, redemption, settlement, and lifecycle management of tokenized products.
The Cyberport-backed initiative aims to position Hong Kong as a rising digital asset hub, combining strict financial compliance with blockchain efficiency. DigiFT's SFC license ensures regulatory standards, while Chainlink's oracle services and Digital Transfer Agent (DTA) framework power the automation.
In practice, investors can submit subscription, buy, sell, or redemption orders for UBS's tokenized products through DigiFT's regulated distributor smart contracts. Chainlink-powered DTA smart contracts process these orders and execute trades, recording each step on-chain. They also automatically trigger the corresponding lifecycle activities, including issuing, redeeming, or updating fund positions within UBS's tokenized product smart contracts. These activities adhere to the Capital Markets Technology Association (CMTA) Token Standard.
The collaboration aims to establish a regulated infrastructure that maximizes the efficiency, accessibility, and interoperability of blockchain, reducing manual procedures and enabling institutional shareholders to save money. This automation sharply reduces manual errors, accelerates settlement, and ensures transparent, real-time recordkeeping. Chainlink's DTA framework is blockchain agnostic, opening the door for scalability and multi-chain adoption and has the potential to extend beyond Hong Kong and support regulated digital asset operations globally.
Henry Zhang, Founder & Group CEO of DigiFT, described the project as a step toward a “truly open economy where financial products can interoperate seamlessly across borders and platforms”. Chainlink Labs' Capital Markets President, Fernando Vazquez, added that the partnership represents a “major milestone for automating fund issuance and lifecycle management in a secure, transparent, and compliant way”. Kevin Loo, DigiFT's Hong Kong CEO, noted that the project reinforces the city's role as a global hub for regulated tokenized finance.
Hong Kong's pilot subsidy scheme represents a governmental commitment to smart regulation and underscores the drive for operational efficiency, institutional standards, and global leadership in tokenized finance. The collaboration between DigiFT, Chainlink, and UBS demonstrates how traditional finance and blockchain technology can meet and enable institutional investors with efficiency and trust. The project has solid institutional support and a regulatory front, making it potentially the foundation of future infrastructure in tokenized finance, linking the financial centers of Asia to international capitals.
