Chainlink SmartCon Viewpoint: UBS Executive Director Says Structural Market Forces Drive Fund Tokenization Products

Odaily Planet Daily Report: At the Chainlink 2024 SmartCon conference in Hong Kong, which focused on "integrating blockchain and traditional finance," a group of traditional financial institutions actively exploring the deep integration of digital assets and on-chain finance shared many insights. Among them, UBS Executive Director Andrew Wong stated: "The driving forces behind the market and asset managers' adoption of tokenized fund products include three aspects: First, on the supply side, i.e., from the perspective of asset issuance, the legal and regulatory factors for previous asset tokenization were relatively complex, while products like ETFs provide a standardized and convenient tool; second, on the demand side, when there is more liquidity or cash flow on-chain, whether it's tokenized bank deposits, CBDCs, or stablecoins, investment products will bring more liquidity; third, the pilot of tokenized products on public chains, such as our asset tokenization attempt on the Ethereum chain last year, has allowed us to truly start thinking about the smart contracts at the core of the product and how to use them, just like the APIs outside the firewall, and we have observed that if we provide a product in this way, it will also determine what assets the users will connect to. These structural market forces have collectively driven the development of tokenized assets."