DigiFT, Chainlink and UBS Win Hong Kong Grant to Automate Tokenized Fund Operations

DigiFT, Chainlink and UBS announced September 11 their joint project received approval under Hong Kong's Cyberport Blockchain and Digital Asset Pilot Subsidy Scheme to develop automated systems for tokenized fund operations. The collaboration brings together Singapore-licensed institutional tokenized real-world assets exchange DigiFT, oracle platform Chainlink, and UBS's internal tokenization service UBS Tokenize.

The project addresses a key limitation in the $132 trillion global asset management industry, where simply issuing assets on-chain fails to capture blockchain technology's full potential for speed, efficiency and accessibility. The three firms are building regulated blockchain infrastructure designed to automate and streamline distribution, settlement and lifecycle management of tokenized products while reducing manual errors and costs significantly.

Under the proposed workflow, investors submit subscription and redemption orders for UBS tokenized products through DigiFT's regulated distributor smart contracts. Chainlink's Digital Transfer Agent smart contracts then process and record these orders on-chain, triggering corresponding issuance, redemption and other lifecycle activities on UBS tokenized product smart contracts following Capital Markets and Technology Association token standards.

DigiFT operates as a dual-licensed exchange for tokenized real-world assets in both Singapore and Hong Kong, two of Asia's most developed regulatory jurisdictions. The company recently obtained licensing from Hong Kong's Securities and Futures Commission, positioning it uniquely in the region's tokenization landscape.

"Cyberport is at the heart of Hong Kong's digital transformation," said DigiFT founder and group CEO Henry Zhang. "Through this project, we combine institutional partners, regulated infrastructure and blockchain technology to build the next chapter of tokenized fund distribution."

Chainlink Labs Capital Markets President Fernando Vazquez emphasized the project's significance for institutional fund distribution, stating the integration creates "a transformative new model for institutional fund distribution" that meets Hong Kong's requirements for secure, transparent and compliant smart contract workflows.

The Hong Kong Cyberport program provides subsidies covering up to 80 percent of project costs, with maximum grants of HK$500,000 per project for eligible blockchain and digital asset initiatives. The approval highlights Hong Kong's push to establish itself as a leading regulated digital asset hub in Asia.

DigiFT Hong Kong CEO Kevin Loo noted the city's rapid emergence as a regulated digital asset center, with the project inclusion demonstrating the company's commitment to building long-term infrastructure in Hong Kong while helping cement the city's position as a global tokenization finance hub.

Chainlink's Digital Transfer Agent framework enables connectivity across any blockchain, establishing groundwork for widespread adoption of Hong Kong-regulated tokenized products with global scalability potential. As part of the project, DigiFT is validating infrastructure and providing commercial feedback to ensure systems meet Hong Kong financial institutions' compliance, scalability and interoperability requirements.

The collaboration represents growing institutional interest in tokenization technology, with traditional financial services firms increasingly exploring blockchain-based solutions for asset management and distribution efficiency improvements. 

Connect with us: 
- Telegram: t.me/blockflownews 
- Twitter: x.com/BlockFlow_News