A new collaboration between Chainlink Labs, UBS Asset Management, and DigiFT is aiming to overhaul how investment funds are created and managed.
The three firms announced on Sept. 11 that they are building an automated framework for tokenized products under Hong Kong’s Cyberport program.
The Cyberport Blockchain & Digital Asset Pilot Subsidy Scheme is a government-backed effort to encourage Web3 experimentation in Hong Kong. The scheme provides funding and a regulatory sandbox for projects that could serve as templates for broader adoption.
Henry Zhang, the founder of DigiFT, said:
“Cyberport is at the heart of Hong Kong’s digital transformation. Through this project, we are combining institutional partners, regulated infrastructure, and blockchain technology to build the next chapter of tokenized fund distribution.”
Asset tokenization
According to the statement, the three firms’ initiative focuses on replacing manual processes in fund operations with blockchain-based automation.
The system is expected to reduce errors, streamline transfers, and lower costs across the $132 trillion global asset management sector by embedding smart contracts into each stage, from issuance to redemption.
UBS will contribute its proprietary UBS Tokenize platform, while Chainlink brings in its Digital Transfer Agent, a tool that validates and records transactions on-chain. DigiFT, licensed in Singapore and Hong Kong, will provide the regulated distribution channel.
These components are designed to allow investors to place orders and withdrawals through smart contracts that automatically trigger the required actions on UBS’s tokenized funds.
Chainlink Labs executive Fernando Vazquez described the project as a landmark for the industry. He said the integration shows how fund issuance and lifecycle management can be automated in a way that remains compliant and transparent within Hong Kong’s financial system.
According to him, the framework demonstrates what future capital markets could look like once blockchain technology is fully embedded into their operations.
If successful, the collaboration could accelerate the speed at which tokenized financial products move from pilot programs to mainstream investment offerings.