Chainlink, UBS, and DigiFT have launched a joint pilot project testing the automation of processing tokenized investment instruments in Hong Kong.
Partnership and Project Goals
This pilot project involves Chainlink, which provides blockchain solutions, UBS, managing $5.9 trillion in assets, and DigiFT, which offers a trading platform for tokenized assets. The main goal is to automate all operational phases for tokenized financial instruments.
Automation Process
Investors can initiate operations by submitting transaction requests and engaging with smart contracts on DigiFT's platform to execute subscriptions or redemptions. Chainlink's Digital Transfer Agent system authenticates these transactions and initiates automated operations within UBS's tokenized product contracts.
Regulatory Aspects and Technology
Hong Kong operates under separate crypto asset regulations distinct from mainland China, though the latter does affect business activities within the region. DigiFT is responsible for ensuring compliance with local standards and verifying compatibility with existing financial frameworks.
The project by Chainlink, UBS, and DigiFT marks a significant step towards the automation of tokenized assets, showcasing the potential of blockchain technology within the stringent regulatory conditions present in Hong Kong.
