Hong Kong’s ambition to become a global digital finance hub is gaining traction with a new collaboration between UBS Asset Management, Chainlink Labs, and DigiFT. The three firms have partnered to create an automated framework for tokenized funds, a project supported by the Hong Kong government’s Cyberport program.
A Government-Supported Initiative
This project is part of the Cyberport Blockchain & Digital Asset Pilot Subsidy Scheme, a government-backed initiative designed to provide funding and a controlled regulatory environment for Web3 experiments. By creating a working model for traditional finance to adopt tokenization at scale, the partnership aims to prove that these technologies can be integrated with existing, regulated financial systems.
Automating the Fund Lifecycle
The new system will use smart contracts to automate key processes in the $132 trillion asset management industry, from fund issuance to redemption. This is expected to reduce errors, cut down transfer times, and lower operational costs.
- UBS will contribute its proprietary UBS Tokenize platform.
- Chainlink will provide its Digital Transfer Agent framework for on-chain validation.
- DigiFT will offer its licensed distribution channel, connecting the system to investors.
If successful, this collaboration could serve as a template for how the capital markets of the future will operate, bringing tokenized financial products from pilot programs into the mainstream. This effort highlights Hong Kong’s push to lead in the fusion of traditional finance and blockchain technology.
September 2025, Cryptoniteuae
