Chainlink, a leading blockchain oracle provider, has partnered with UBS and DigiFT to launch a pilot project aimed at automating tokenized funds in Hong Kong.
Pilot Project and Its Goals
The pilot project focuses on deploying blockchain infrastructure to streamline the distribution, settlement, and lifecycle management of tokenized financial products. The main objective is to reduce manual errors and increase operational efficiency in fund management.
Technological Integration and Automation
Under the project, investors can submit subscription or redemption requests for UBS's tokenized funds via DigiFT's smart contracts. Chainlink's contracts verify and process these orders on-chain, ensuring transparency and accuracy. The processed instructions trigger fund-related events, like issuance and redemption, compliant with the Capital Markets Technology Association standards developed in Switzerland.
Regulations and Future of Asset Tokenization
Hong Kong offers clearer regulatory frameworks for digital assets compared to mainland China, though it operates under overarching policies from the country. DigiFT plays a crucial role in ensuring the new solutions meet financial standards. Emerging automation trends in tokenized funds can help mitigate risks associated with manual processing and potentially increase returns for investors.
The pilot project by Chainlink, UBS, and DigiFT in Hong Kong marks a significant step toward automating the management of tokenized funds, which may enhance efficiency and reduce financial risks.
