UBS, Chainlink, and DigiFT, the leading digital asset exchange, announced on September 11th that they will launch a pilot program for an automated tokenization fund in Hong Kong. The program has been approved by Cyberport’s Blockchain and Digital Asset Pilot Subsidy Program.
The three parties jointly launched the Hong Kong RWA pilot program.
DigiFT is a compliant RWA digital asset exchange with dual licenses in Singapore and Hong Kong. It has partnered with oracle service provider Chainlink and UBS Tokenize, UBS's internal tokenization service, to jointly propose an automated tokenized fund solution.
According to the tripartite announcement, the project has received subsidies and official recognition from Hong Kong Cyberport, becoming an exclusive test platform dedicated to testing new encryption and blockchain applications, and establishing a regulated blockchain system to handle fund issuance, settlement and subsequent management processes.
System operation process is open to the public: subscription and redemption are all automatically processed on the chain
The announcement states that investors who wish to subscribe to or redeem UBS's tokenized fund products will first submit instructions through DigiFT's compliant smart contracts. These instructions are then processed by Chainlink's "Digital Transfer Agent" smart contract, which verifies the instructions and records them on-chain.
Once verification is complete, the system automatically initiates subsequent processes, including the issuance, redemption, or other management actions of the tokenized fund, and follows the tokenized product issuance standards established by the Swiss Capital Markets Technology Association (CMTA) to ensure that the process is consistent with existing digital securities regulations.
The goal is to fully automate every step from fund issuance to management, balancing efficiency and compliance.
Reduce manual errors and improve efficiency. DigiFT helps provide compliance feedback.
The announcement stated that traditional fund operations often require manual reconciliation and adjustments, a tedious and error-prone process that can lead to discrepancies between the fund's net value and actual assets. Automated blockchain infrastructure can reduce errors and improve efficiency, thereby saving operating costs and generating higher returns for fund operators or directly returning them to investors.
DigiFT, which holds dual compliance licenses in Singapore and Hong Kong, will be responsible for providing technical and compliance feedback in this program to ensure that the system meets the compliance and cross-system interoperability requirements of Hong Kong financial institutions.
This initiative is part of Hong Kong Cyberport's "Blockchain and Digital Asset Pilot Subsidy Program." In addition to the tokenization fund, the program is also exploring decentralized identity verification, payments, and stablecoins, as well as blockchain applications that combine social innovation with digital experiences.
China may strengthen regulation, putting pressure on Hong Kong's crypto innovation
Overall, although Hong Kong has a clear digital asset regulatory framework, it still needs to comply with relevant Chinese policies.
Reports suggest China may introduce a new round of crypto restrictions on local companies operating in Hong Kong. This has made Hong Kong a key testing ground for the global integration of crypto and traditional finance, and has also drawn particular attention to the tripartite automated tokenized fund initiative.
The article Chainlink, UBS, and DigiFT Join Forces to Pilot Automated Tokenized Funds in Hong Kong originally appeared on ABMedia ABMedia .
