Automated Operation of Tokenized Funds by DigiFT, Chainlink, and UBS through Blockchain Technology
In a significant move for the tokenized finance industry, DigiFT, Chainlink, and UBS Tokenize have announced a joint project to develop a regulated blockchain-based infrastructure for tokenized product distribution. The project, approved under the Cyberport Blockchain & Digital Asset Pilot Subsidy Scheme, aims to automate and streamline the distribution, settlement, and lifecycle management of tokenized products.
Kevin Loo, CEO of DigiFT, stated that the project's selection under the subsidy scheme reflects DigiFT's commitment to building long-term infrastructure in Hong Kong. The project is a continuation of DigiFT's efforts to expand its footprint in Hong Kong.
The collaboration with UBS and Chainlink is designed to create solutions that meet institutional standards and strengthen Hong Kong's position as a global hub for tokenized finance. Investors can submit orders for UBS's tokenized products through DigiFT's regulated distributor smart contracts. Chainlink's Digital Transfer Agent smart contracts process these orders and record them onchain.
DigiFT is validating the infrastructure and providing commercial feedback to ensure the system meets the compliance, scalability, and interoperability requirements of Hong Kong's financial institutions. Henry Zhang, Founder & Group CEO of DigiFT, stated that the project is a step towards a truly open economy where financial products can interoperate seamlessly.
The project follows the Capital Markets Technology Association (CMTA) Token standards and underscores the potential of Hong Kong as a leading center for regulated digital assets. Fernando Vazquez, President, Capital Markets at Chainlink Labs, mentioned that the project enables a transformative new model for institutional fund distribution.
Chainlink's DTA framework, which unlocks connectivity across any blockchain, is being utilized in the project. This facilitates widespread adoption of tokenized products regulated in Hong Kong and scalable globally. The success of the project could further boost Hong Kong's standing as a global hub for tokenized finance.
The institutions involved in the project are DigiFT, Chainlink, and UBS Tokenize. They collaborate under Hong Kong's Cyberport Blockchain & Digital Asset Pilot Subsidy Scheme to automate operations for tokenized funds. The approval of this project underscores DigiFT's dual-licensed status as an exchange for tokenized real-world assets in Singapore and Hong Kong.
Loo added that the project's focus on institutional standards and compliance highlights the growing importance of regulation in the tokenized finance sector. The project's success could pave the way for more collaborations and innovations in the industry, further cementing Hong Kong's position as a global leader in the field.
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