- Chainlink, UBS and DigiFT launched a joint, tokenized onchain fund operation in Hong Kong.
- However, the LINK token barely reacted to the news.
Chainlink has further strengthened its alliance with financial services provider UBS and RWA exchange DigiFT and launched an automated, tokenized on-chain fund operation in Hong Kong. As part of this initiative, DigiFT has released its new white paper highlighting Chainlink’s role in the first productive workflow under the Hong Kong digital asset framework.
Chainlink, UBS and DigiFT launch token funds in Hong Kong
The three Hong Kong-regulated parties have thus combined their efforts to automate tokenized fund operations using Chainlink’s Digital Transfer Agent (DTA) standard and Chainlink Runtime Environment (CRE) technologies.
Chainlink’s recent X post revealed that DigiFT has published its white paper highlighting the automation of tokenized fund operations. The X post read,
“Developed under the Digital Asset Program of Hong Kong Cyberport, the region’s premier digital tech hub and innovation accelerator, the solution leverages Chainlink to securely execute and automate on-chain fund subscription and redemption processes, with CRE operating DTA smart contracts for transaction recording.”
How does tokenized fund automation work?
In particular, the groundbreaking technical pilot by Chainlink, UBS and DigiFT under Hong Kong Cyberport’s Blockchain & Digital Asset Pilot Subsidy Scheme has demonstrated the potential of fund operations becoming more efficient through smart contract-to-smart contract interactions. The process not only increases accountability and efficiency, but also ensures regulatory compliance.
This joint effort is a blend of the traditional financial system and blockchain technology, paving the way for a scalable model of regulated token funds. UBS provides its expertise in asset management and tokenization, while DigiFT offers its regulated framework for on-chain distribution and liquidity.
Chainlink’s interoperability and automation technology is the missing link that allows the on-chain and off-chain processes to be in constant contact without manual intervention.
UBS and Chainlink are doing pioneering work
UBS announced earlier this month that it had realized the world’s first fully tokenized fund transaction using Chainlink’s DTA standard. The UBS USD Money Market Investment Fund Token (uMINT) was used for the transaction.
DigiFT leveraged Chainlink’s DTA standard to seamlessly process subscription and redemption orders, demonstrating the potential of blockchain-based automation to streamline fund operations and increase speed, efficiency and manageability. Henry Zhang, founder and CEO of DigiFT, said:
“Chainlink CCIP is a foundational technology for enhancing blockchain-based capabilities through secure and seamless interoperability. By adopting the Chainlink CCIP and Proof of Reserve, we are not only expanding DigiFT’s crosschain reach, but also increasing the transparency, security and reliability of our tokenized RWA offerings. This collaboration strengthens our ability to create a connected system between Web3 and traditional financial services, increasing adoption and trust among institutional investors.”
LINK price continues to fall
After such a big advance, the LINK token is still down significantly, and in the last week its value has fallen by 13%. At the moment, with a price of $14.10, the altcoin is showing losses of 0.74% and 15.89% for a day and a month, respectively.
As a result of this downward trend, the market has become more and more active, as evidenced by the doubling of sales in the last 24 hours. It currently stands at $855 million, up 100%.
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