Chainlink, a blockchain oracle supplier, and UBS, a $5.9 trillion asset supervisor, have partnered with DigiFT for a pilot examine to automate real-world tokenization funds. This function might remove guide errors, in response to the businesses.
If profitable, the examine might have implications for RWA tokenization in Hong Kong, a particular administrative area of China.
In accordance with the announcement, the three teams are “growing a regulated blockchain-based infrastructure designed to automate and streamline the distribution, settlement, and lifecycle administration of tokenized merchandise […].”
The examine is a part of Hong Kong’s Cyberport Blockchain & Digital Asset Pilot Subsidy Scheme, a sandbox that assessments new crypto concepts for future implementation in Hong Kong.
In accordance with the mission’s workflow, traders first submit subscription or redemption requests for UBS’s tokenized merchandise by means of DigiFT’s sensible contracts. These directions are then processed by Chainlink’s Digital Switch Agent contracts, which act because the infrastructure layer to confirm the orders and document them instantly onchain.
As soon as processed, the orders set off the corresponding issuance, redemption and different lifecycle occasions on UBS’s tokenized product contracts, which is claimed to comply with the Capital Markets Know-how Affiliation (CMTA) Token requirements, a framework developed in Switzerland to harmonize the issuance of digital securities.
Another crypto concepts into consideration in Cyberport are decentralized identification, funds and stablecoins, and blockchain for social innovation and digital expertise.
Not like mainland China, Hong Kong has a transparent regulatory framework for digital belongings. Nevertheless, it’s nonetheless topic to China’s guidelines, such because the reported forthcoming crypto restrictions on Chinese language firms working within the administrative zone.
DigiFT, an alternate that makes a speciality of tokenized belongings, is offering suggestions on whether or not the technological implementation meets the compliance and interoperability necessities of the zone’s monetary establishments.
Handbook reconciliation and changes of funds may end up in monitoring errors or conditions the place the worth of a fund doesn’t equal the worth of the underlying asset.
Developments in automation of RWA tokenization funds embody decentralized finance integrations and yield technology. As a result of automation can improve effectivity, implementing it will possibly decrease prices, which brings in additional income for the fund operator or is handed on to the traders.
Associated: $400T TradFi market is a big runway for tokenized RWAs: Animoca
RWA tokenization on the rise in 2025
RWA tokenization has gained momentum in 2025 as establishments have entered crypto and crypto exchanges have dabbled in conventional finance areas. For a 30-day interval ending on Aug. 29, tokenized institutional various funds jumped 47% to $1.74 billion, and the general RWA tokenization market cap has largely trended upward in 2025.
In accordance with CoinGecko, the market capitalization of all real-world asset cash, which embody protocols and tokenized belongings, has reached $66 billion at the moment of writing. That quantity is up 1.8% previously 24 hours.
Conventional finance establishments and crypto exchanges have cross-pollinated the world of real-world asset tokenization. BlackRock and Franklin Templeton have funds backed by US Treasurys, and Kraken and Bybit have explored tokenized shares.
Journal: Can Robinhood or Kraken’s tokenized shares ever be really decentralized?
