Chainlink, a leading blockchain oracle provider, has teamed up with UBS, a $5.9 trillion asset manager, and DigiFT, a tokenized asset exchange, are going to launch a pilot program in Hong Kong aimed at automating real-world asset (RWA) tokenization funds.
The initiative, part of Hong Kong’s Cyberport Blockchain & Digital Asset Pilot Subsidy Scheme, seeks to establish the city as a global hub for tokenized finance, particularly targeting Asian investors.
The pilot focuses on developing a regulated blockchain infrastructure to streamline the distribution, settlement, and lifecycle management of tokenized products. By automating these processes, the platform aims to eliminate manual errors, enhance efficiency, and reduce operational costs, potentially benefiting both fund operators and investors.
Investors submit subscription or redemption requests for UBS’s tokenized products via DigiFT’s smart contracts. These requests are processed by Chainlink’s Digital Transfer Agent contracts, which verify and record orders on-chain.
The system then triggers issuance, redemption, or other lifecycle events for UBS’s tokenized products, adhering to the Capital Markets Technology Association (CMTA) Token standards, a Swiss framework for digital securities.
Hong Kong’s Role in RWA Tokenization
Unlike mainland China, Hong Kong offers a clear regulatory framework for digital assets, making it an ideal testing ground for innovative crypto projects.
However, it remains subject to China’s broader regulations, including potential upcoming restrictions on crypto activities in the region.
DigiFT is ensuring the platform meets Hong Kong’s compliance and interoperability requirements for financial institutions.
The Growing RWA Market
RWA tokenization has surged in 2025, with the market capitalization of real-world asset coins reaching $66 billion.
Tokenized institutional alternative funds grew 47% to $1.74 billion in the 30 days ending August 29, 2025.
This growth reflects increasing interest from traditional finance giants like BlackRock and Franklin Templeton, as well as crypto exchanges like Kraken and Bybit, which are exploring tokenized stocks and other assets.
Implications and Future Prospects
The collaboration between Chainlink, UBS, and DigiFT could set a precedent for automated, blockchain-based RWA management.
By integrating decentralized finance and yield-generation trends, the platform could lower costs and improve accessibility for investors.
Other initiatives in Cyberport’s sandbox include decentralized identity, stablecoins, and blockchain-driven social innovation, signaling Hong Kong’s growing role in the global digital asset ecosystem.
