UBS, DigiFT, and Chainlink introduced a new automated infrastructure for tokenized funds in Hong Kong, marking an important step in the development of tokenized finance.
Collaboration of UBS, Chainlink, and DigiFT
UBS, a leading financial institution, teamed up with Chainlink and DigiFT to create an infrastructure approved by Hong Kong Cyberport. The system automates tokenized fund management using smart contracts. This initiative involves the integration of smart contracts and utilizes Chainlink's Digital Transfer Agent with DigiFT's exchange platform, aiming to simplify fund lifecycle operations and ensure regulatory compliance.
Impact on Chainlink Token Value
The launch of the new project impacted the value of the Chainlink token, which registered a 2.5% increase. This collaboration may signal a shift in the management of tokenized funds globally, facilitating cost reductions for financial institutions.
Expert Predictions on Rapid Expansion of Tokenized Finance
Similar initiatives, such as JPMorgan's Onyx, explored tokenized securities but lacked the same level of public-private collaboration. "The partnership represents a significant milestone for automating fund issuance and lifecycle management in a secure, transparent, and compliant way," noted Fernando Vazquez, Capital Markets President of Chainlink Labs.
The creation of an automated infrastructure for tokenized funds in Hong Kong showcases the potential for significant changes in the financial sector and may accelerate the development of tokenized finance on a global scale.
