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 handbook 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 line with the announcement, the three teams are “creating 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 checks new crypto concepts for future implementation in Hong Kong.
In line with the challenge’s workflow, buyers first submit subscription or redemption requests for UBS’s tokenized merchandise via 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 immediately 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 alleged to observe the Capital Markets Expertise Affiliation (CMTA) Token requirements, a framework developed in Switzerland to harmonize the issuance of digital securities.
Another crypto concepts into account 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 property. Nonetheless, 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 change that makes a speciality of tokenized property, 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 can lead to monitoring errors or conditions the place the worth of a fund doesn’t equal the worth of the underlying asset.
Tendencies in automation of RWA tokenization funds embrace decentralized finance integrations and yield era. As a result of automation can enhance effectivity, implementing it will probably decrease prices, which brings in additional income for the fund operator or is handed on to the buyers.
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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 different funds jumped 47% to $1.74 billion, and the general RWA tokenization market cap has largely trended upward in 2025.
In line with CoinGecko, the market capitalization of all real-world asset cash, which embrace protocols and tokenized property, has reached $66 billion at the moment of writing. That quantity is up 1.8% up to now 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 actually decentralized?
