Hong Kong Pilot Marks Breakthrough Moment for Regulated Fund Tokenization

Quick Breakdown 

• Hong Kong completed a first-of-its-kind tokenization pilot, where DigiFT, UBS, and Chainlink automated fund operations entirely through smart contract–to–smart contract interactions.
• The pilot utilised Chainlink’s Digital Transfer Agent (DTA) standard to execute subscriptions, redemptions, and compliance checks on-chain with real-time transparency.
• The collaboration establishes a replicable, regulated model for institutional tokenized funds, positioning Hong Kong as a leading hub for compliant on-chain finance.

 

Hong Kong has taken a decisive step toward regulated on-chain finance after DigiFT, UBS, and Chainlink completed a technical pilot proving that fund operations can run entirely through blockchain-based automation. The project, executed under Hong Kong Cyberport’s Blockchain & Digital Asset Pilot Subsidy Scheme, marks one of the clearest institutional demonstrations of tokenized funds operating in a fully compliant environment.

Chainlink and UBS are featured in DigiFT’s new whitepaper, showcasing the first live, in-production tokenized fund workflow powered by the Chainlink Digital Transfer Agent (DTA) technical standard and Chainlink Runtime Environment (CRE).

Developed under… pic.twitter.com/3ucsOkaAhn

— Chainlink (@chainlink) November 17, 2025

Smart contracts replace manual fund administration

The pilot was built on Chainlink’s Digital Transfer Agent (DTA) technical standard, enabling subscription, redemption and compliance checks to be handled through direct smart contract–to–smart contract interactions. Instead of the manual, multi-party reconciliation that has defined traditional fund administration, each step was processed in real time on-chain with transparent, auditable outputs.

Project partners stated that the results demonstrate that highly regulated fund workflows can be transitioned to programmable blockchain infrastructure without compromizing oversight. The demonstration recreated the operational flow of a live fund, allowing regulators and asset managers to observe how tokenized financial products could function at an institutional scale.

A replicable model for regulated tokenized funds

The collaboration combines three critical components of the emerging tokenization landscape: UBS’s asset-management and tokenization expertise; DigiFT’s licensed on-chain distribution and liquidity framework; and Chainlink’s interoperability and automation technology. Together, the system forms a replicable model for global asset managers seeking compliant routes into fund tokenization.

The pilot moves the sector one step closer to an era where regulated funds operate with the speed and transparency of blockchain infrastructure rather than legacy transfer-agent systems. For Hong Kong, the initiative reinforces its ambition to become a leading jurisdiction for institutional digital-asset innovation, offering a blueprint for how tokenized funds could operate under strict regulatory standards.

Meanwhile, SBI Group has confirmed that it will use Chainlink’s Cross-Chain Interoperability Protocol (CCIP) as the sole network for handling cross-chain connections on its institutional tokenization platform. This decision will make it easier to issue assets, settle transactions, and support secondary market trading across both public and permissioned blockchains, marking another step forward for institutional adoption of crypto. 

 

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