Chainlink, a blockchain oracle provider, and UBS, a $5.9 trillion asset manager, have partnered with DigiFT for a pilot study aimed at streamlining asset tokenization processes.
Participants' Partnership
The companies are developing a regulated blockchain infrastructure designed to automate and streamline the distribution, settlement, and lifecycle management of tokenized products. This was indicated in their joint announcement.
Tokenization Automation Process
Investors initially submit subscription or redemption requests for UBS’s tokenized products via DigiFT’s smart contracts. These instructions are processed by Chainlink’s contracts, serving as the infrastructure layer for verifying and recording orders on-chain. Following this, orders trigger relevant events on UBS’s tokenized product contracts.
Current Trends in Asset Tokenization
The automation of asset tokenization is gaining importance as it allows for cost reduction and increased efficiency. Initiatives in Hong Kong also encompass developments in decentralized identities and payments, and blockchain technology for social innovation.
The pilot project by Chainlink and UBS may significantly impact the asset tokenization market in Hong Kong, which benefits from a clear regulatory framework for digital assets, contrasting with the situation in mainland China.
