Hong Kong's Cyberport has approved a groundbreaking project involving DigiFT, Chainlink, and UBS Tokenize to automate tokenized fund operations, marking a significant step forward in digital finance regulation and efficiency.

This collaboration aims to revolutionize how investment funds are created and managed by utilizing blockchain technology, smart contracts, and compliance measures under Hong Kong’s Cyberport program.

The pilot project involves developing a regulated blockchain infrastructure to automate key processes such as distribution, settlement, and lifecycle management of tokenized funds, as part of Hong Kong’s Cyberport Blockchain & Digital Asset Pilot Scheme.

2025 has seen a notable surge in real-world asset (RWA) tokenization, with tokenized institutional alternative funds increasing by 47% over 30 days to reach $1.74 billion, contributing to a total market cap of $66 billion.

The system will enable secure and compliant transmission of investor orders through regulated smart contracts, adhering to CMTA Token standards to meet international capital market requirements.

Chainlink’s DTA framework, being blockchain-agnostic, supports scalability across multiple platforms, fostering broader adoption and institutional confidence in tokenized assets.

Traditional finance giants like BlackRock and Franklin Templeton, along with crypto exchanges such as Kraken and Bybit, are increasingly involved in tokenized assets, including US Treasurys and stocks.

UBS, managing over $5.9 trillion, enhances credibility by integrating its tokenized product contracts and standards to automate processes like fund issuance, redemptions, and reporting within a compliant environment.

Investors will submit subscription and redemption requests via DigiFT’s smart contracts, which are verified and recorded on-chain by Chainlink’s Digital Transfer Agent contracts, automating these processes.

Automation in RWA tokenization is on the rise, offering benefits such as increased efficiency, reduced costs, and higher investor returns, with expansion into decentralized finance and yield generation.

The collaboration involves Chainlink providing its decentralized oracle network, DigiFT offering a regulated platform, and UBS contributing its tokenized products, all working together to create a compliant infrastructure.

This initiative has positively impacted Chainlink’s price, which is currently at $23.52, up 5% over the past week, with analysts predicting potential surges to $30, $50, or even $100 based on technical trends.

The project aims to develop a regulated infrastructure for tokenizing real-world assets, enhancing accessibility, interoperability, and reducing manual procedures for institutional investors.