DigiFT, Chainlink, and UBS have partnered to automate tokenized fund operations under Hong Kong’s Cyberport Blockchain & Digital Asset Pilot Subsidy Scheme.
Following this announcement, DigiFT, Chainlink, and UBS are currently developing a regulated blockchain-based infrastructure that was designed to automate and streamline the distribution, settlement, and lifecycle management of tokenized products. This process also aims to reduce manual errors and unlock significant cost savings.
In addition, in the project’s workflow, investors are set to be enabled to submit subscription/redemption orders for UBS’s tokenized products through DigiFT’s regulated distributor smart contracts, which are processed by Chainlink’s Digital Transfer Agent smart contracts and recorded onchain. After this process is done, they will need to trigger the corresponding issuance, redemption, and other lifecycle activities on the UBS tokenized product smart contracts, which follow the Capital Markets Technology Association (CMTA) Token standards.
More information on the DigiFT x Chainlink x UBS partnership
According to the official press release, the project will combine institutional partners, regulated infrastructure, and blockchain technology in order to build an optimised tokenized fund distribution, which is expected to develop an open economy where financial products can interoperate securely across borders and platforms. At the same time, the initiative represents an important step for automating fund issuance and lifecycle management, as well as the requirements needed for safe, transparent, and compliant use of smart contract workflows in the context of Hong Kong.
Chainlink’s Digital Transfer Agent (DTA) framework was developed in order to focus on the connectivity across blockchains, aiming to provide widespread adoption of tokenized products regulated in Hong Kong and scalable across multiple regions across the globe. As part of the project, DigiFT is set to validate the infrastructure and provide commercial feedback in order to ensure the system meets the compliance, scalability, and interoperability requirements of Hong Kong’s financial institutions.
