UBS, Chainlink and DigiFT have secured approval under Hong Kong’s Cyberport Blockchain and Digital Asset Pilot Subsidy Scheme to build an automated infrastructure for tokenized financial products.
The pilot aims to move routine fund operations — distribution, settlement and lifecycle management — from paper and manual processes into smart contracts. Under the proposed flow, investors place orders through DigiFT’s regulated distributor smart contracts; Chainlink’s Digital Transfer Agent framework will process and record transactions onchain, which then triggers issuance or redemption on UBS’s token contracts. The partners say this approach should reduce operational costs, lower settlement times and minimize human error.
Market reaction was modestly positive: Chainlink’s native token LINK ticked above $24, up about 2.5% after the announcement. The story also follows Chainlink’s recent rollout of its Cross-Chain Interoperability Protocol (CCIP) on the Aptos blockchain, expanding enterprise connectivity for DeFi and corporate-treasury use cases.
Why it matters: Tokenized funds promise faster settlement and greater automation for institutional products and corporate treasury operations, potentially unlocking new distribution channels for banks and asset managers. Having a regulated distributor layer and onchain transfer agent could help reconcile custody, transfer and compliance requirements in a standardized way.
Risks and caveats: This is a pilot project funded under a subsidy scheme — approval does not guarantee broad market adoption. Regulatory, custody and operational integration challenges remain; market moves in LINK and other tokens can be volatile and are not investment advice.
Source: DigiFT Insights. Read the original coverage for full details.