Chainlink has announced a strategic partnership with global wealth management giant UBS and regulated Real World Asset (RWA) platform DigiFT to automate tokenized fund operations on-chain. This collaboration represents a significant step in bridging traditional finance with blockchain technology, with the initiative falling under Hong Kong's Cyberport program aimed at promoting blockchain adoption and digital asset infrastructure.
The partnership brings together three key players: Chainlink as the decentralized oracle network providing real-world data to smart contracts; UBS as one of the world's largest wealth managers with $5.9 trillion in assets under management, bringing institutional credibility; and DigiFT as a regulated RWA platform ensuring compliance and secure management of tokenized products.
The initiative utilizes Chainlink's Digital Transfer Agent (DTA) smart contract framework to automate the entire lifecycle of UBS's tokenized products. Investors can place purchase, sale, or redemption orders for UBS's tokenized products through DigiFT's regulated smart contracts. The DTA framework automatically executes these orders and records transactions on-chain, while also handling issuance, redemption, and other fund lifecycle activities directly on UBS's tokenized product smart contracts.
This automation reduces manual errors, accelerates operations, and ensures transparency through immutable recording of all activities. The DTA framework is blockchain-agnostic, allowing potential scalability and adoption across multiple blockchain platforms.
The project is part of Hong Kong's Cyberport Blockchain and Digital Asset Pilot Scheme, designed to incentivize regulated blockchain solutions and establish Hong Kong as a reference hub for digital assets. Kevin Loo, CEO of DigiFT Hong Kong, emphasized that the project aligns with the city's vision of creating a robust ecosystem for digital assets, highlighting the importance of developing long-term infrastructure, respecting institutional standards, and supporting tokenized finance with regulatory compliance.