The joint project of Chainlink Labs, UBS Asset Management, and DigiFT aims to modernize fund management through automation and tokenization. The pilot project has been launched in Hong Kong under a subsidy scheme for blockchain initiatives.
What Will be Automated
Under the pilot, investors will issue subscription or redemption orders for UBS tokenized funds via DigiFT’s regulated distributor smart contracts. Those instructions will be validated and recorded on-chain through Chainlink’s Digital Transfer Agent. Once validated, issuance, redemption, or lifecycle events on UBS’s tokenized product contracts will execute automatically. The smart contracts are CMTA Token compliant.
Regulatory Environment and Pilot Scheme
The project is under Hong Kong’s Cyberport Blockchain & Digital Asset Pilot Subsidy Scheme, which is a regulatory sandbox for Web3 experimentation. This provides oversight and compliance requirements so project members can test how tokenization can work in a regulated environment. DigiFT and UBS are Singapore-licensed; Chainlink brings protocol tools for transparency and auditability.
Cost, Speed, and Operational Efficiency Impacts
Automation is expected to reduce fund operation overhead by displacing manual work and reconciliation. Smart contract-enabled liquidity of subscription and redemption processes, and on-chain issuance/redemption executions, will reduce delays. Recorded events on-chain will provide transparent audit trails that support compliance and monitoring.
The Chainlink and UBS initiative for fund tokenization in Hong Kong is a step toward modernizing fund management with blockchain technology. Automating the proposed processes has the potential to lower costs, increase transparency, and speed up operations in the tokenized asset sphere.
