The companies have announced that the pilot will test a blockchain infrastructure. This system is intended to automate the distribution, settlement, and management of tokenized products in Hong Kong.
A pilot study has been launched by Chainlink, a blockchain oracle provider, and UBS, a $5.9 trillion asset manager, in collaboration with DigiFT to automate real-world tokenization funds. According to the companies, this functionality could eliminate manual errors.
If successful, the study’s findings could impact real-world asset (RWA) tokenization in Hong Kong, which is a special administrative region of China.
According to the announcement, a regulated blockchain-based infrastructure is being developed by the three groups. This system is designed to automate and streamline the distribution, settlement, and lifecycle management of tokenized products.
The study is a component of Hong Kong’s Cyberport Blockchain & Digital Asset Pilot Subsidy Scheme. This initiative is a sandbox that tests new crypto ideas for their potential future use in Hong Kong.
According to the project’s workflow, initial subscription or redemption requests for UBS’s tokenized products are submitted by investors via DigiFT’s smart contracts. These instructions are subsequently processed by Chainlink’s Digital Transfer Agent contracts, which serve as the infrastructure layer to verify the orders and log them directly on-chain.
Once processed, the orders prompt the corresponding issuance, redemption, and other lifecycle events on UBS’s tokenized product contracts. These are said to align with the Capital Markets Technology Association (CMTA) Token standards, a framework created in Switzerland to standardize the issuance of digital securities.
Other crypto concepts being considered in Cyberport include decentralized identity, payments and stablecoins, as well as blockchain applications for social innovation and digital experience.
Hong Kong Maintains Clear Digital Asset Regulatory Framework Despite Chinese Restrictions
Hong Kong, unlike mainland China, has a clear regulatory framework for digital assets. However, it is still subject to China’s regulations, such as the reported impending crypto restrictions on Chinese companies operating in the administrative zone.
DigiFT, an exchange specializing in tokenized assets, is offering feedback on whether the technological implementation satisfies the compliance and interoperability requirements of the zone’s financial institutions.
Manual reconciliation and adjustments of funds can lead to tracking errors or circumstances where the value of a fund does not match the value of its underlying asset.
Trends in the automation of RWA tokenization funds involve decentralized finance integrations and yield generation. Because automation can enhance efficiency, its implementation can reduce costs. This results in either increased revenue for the fund operator or a financial benefit passed on to investors.
RWA Tokenization Surges in 2025
Momentum has been gained by RWA tokenization in 2025 as institutions have engaged with crypto and crypto exchanges have ventured into traditional finance. For the 30-day period concluding on August 29, tokenized institutional alternative funds saw a 47% increase to $1.74 billion, while the total RWA tokenization market cap has primarily followed an upward trajectory throughout 2025.
CoinGecko reports that the market capitalization for all real-world asset coins, which includes both protocols and tokenized assets, has reached a valuation of $66 billion. This figure has risen by 1.8% over the last 24-hour period.
The realm of real-world asset tokenization has seen a cross-pollination between traditional finance institutions and crypto exchanges. Funds that are backed by U.S. Treasurys have been established by BlackRock and Franklin Templeton, while tokenized stocks have been explored by Kraken and Bybit.
