Testing blockchain-powered infrastructure for tokenized finance
Chainlink, UBS, and DigiFT have launched a new pilot in Hong Kong aimed at automating the distribution, settlement, and lifecycle management of tokenized funds. The initiative is being carried out under the Cyberport Blockchain & Digital Asset Pilot Subsidy Scheme, a regulatory sandbox supporting innovative blockchain projects in the region.
How the pilot works
The pilot introduces a workflow where investors submit subscription or redemption requests for UBSâs tokenized products through DigiFTâs smart contracts. These instructions are then verified by Chainlinkâs Digital Transfer Agent contracts, which record transactions directly onchain.
Once validated, the process automatically triggers issuance, redemption, and other lifecycle events on UBSâs tokenized product contracts. These follow the Capital Markets Technology Association (CMTA) Token Standards, a Swiss-developed framework designed to standardize digital securities.
By eliminating manual reconciliation, the system aims to reduce tracking errors and ensure that the value of tokenized funds always reflects the underlying assets.
Why this matters for Hong Kong
Hong Kong has positioned itself as a regional hub for digital assets, with clearer regulations compared to mainland China. While subject to Beijingâs overarching policies, the region has actively promoted blockchain innovation through initiatives like Cyberport.
The pilot with Chainlink, UBS, and DigiFT could establish a regulated blockchain-based infrastructure that improves efficiency, reduces costs, and enhances compliance for tokenized products. DigiFT, which specializes in tokenized assets, will provide feedback to ensure interoperability with Hong Kongâs financial system.
The rise of RWA tokenization in 2025
Real-world asset (RWA) tokenization has become one of the fastest-growing trends in 2025. According to CoinGecko, the market cap of RWA tokens has reached $66 billion, rising 1.8% in the last 24 hours alone. Over a recent 30-day period, tokenized institutional alternative funds surged 47% to $1.74 billion.
Global giants such as BlackRock and Franklin Templeton have already issued tokenized U.S. Treasury-backed funds, while crypto exchanges like Kraken and Bybit are experimenting with tokenized stocks.
If successful, the Hong Kong pilot could pave the way for automated, large-scale tokenization of funds across Asia. By combining Chainlinkâs blockchain infrastructure, UBSâs institutional products, and DigiFTâs compliance expertise, the initiative may set a new standard for the future of regulated tokenized finance.
Automation in tokenized products could lower operational costs, improve transparency, and increase investor accessâreshaping how traditional and digital finance converge.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.