Chainlink Partners with UBS and DigiFT to Automate Tokenized Funds!

Chainlink, UBS, and DigiFT announced a collaboration under Hong Kong’s Cyberport program to automate tokenized fund operations. This partnership aims to bridge traditional finance with blockchain technology, providing efficiency, transparency, and scalability in institutional-level tokenized asset management.

Partnership Participants

• Chainlink: A decentralized oracle network that supplies smart contracts with real-world data, events, and off-chain computation.
• UBS: A global asset management giant with $5.9 trillion under management, offering institutional credibility and market access.
• DigiFT: A regulated RWA (Real-World Asset) exchange that bridges traditional finance with blockchain infrastructure, delivering compliance-focused tokenized product management.

How the Partnership Works

The partnership uses Chainlink’s Digital Transfer Agent (DTA) smart contracts to provide blockchain-based workflows for tokenized products. Investors can place buy, sell, or redemption orders for UBS’s tokenized products via DigiFT’s regulated distributor smart contracts. The DTA framework automatically executes these orders and records them on-chain, enabling issuance, redemption, and other lifecycle activities directly through UBS’s smart contracts.

Automation reduces manual errors, shortens transaction times, and ensures full transparency of all activities. The DTA’s blockchain-agnostic design also offers scalability and global adoption potential across multiple blockchain platforms.

Significance and Context

This initiative is part of Hong Kong’s Blockchain & Digital Asset Pilot Subsidy Program under Cyberport. DigiFT Hong Kong CEO Kevin Loo highlighted that the project aligns with the city’s robust digital asset ecosystem vision and underscores the importance of supporting tokenized finance in a compliant manner.

Impact on Asset Management

The partnership could revolutionize asset management operations by reducing friction, lowering costs, and shortening processing times. Investors gain greater transparency and trust in tokenized products as fund operations are automated on-chain. Its compliance with government-supported regulatory frameworks also sets a roadmap for future blockchain-finance collaborations.

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