UBS, Chainlink Automate Tokenized Funds in Hong Kong
- UBS, Chainlink automate tokenized funds in Hong Kong with DigiFT.
- Enhances compliance, reduces costs, utilizes smart contracts.
- Partnership backed by Hong Kong Cyberport, Chainlink jumps 2.5%.
UBS, DigiFT, and Chainlink introduced automated tokenized fund infrastructure in Hong Kong under a pilot subsidy scheme, aiming to streamline fund operations through smart contracts.
This collaboration enhances compliance and cost efficiency in fund management, reflecting the significant growth in the tokenization market, positively affecting the Chainlink price trend.
UBS, Chainlink, and DigiFT launched an automated infrastructure for tokenized funds in Hong Kong, approved by the Cyberport Blockchain & Digital Asset Pilot Subsidy Scheme.
The initiative marks a significant step for automation in tokenized finance, impacting markets with immediate positive movement in Chainlink’s token value.
UBS, Chainlink Collaborate on Hong Kong Tokenized Funds
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.
The initiative involves the integration of smart contracts and uses Chainlink’s Digital Transfer Agent with DigiFT’s exchange platform. This aims to simplify fund lifecycle operations and ensure regulatory compliance.
Chainlink Token Value Rises 2.5% After Initiative Launch
The launch impacted the Chainlink token, which saw a 2.5% increase in value. This collaboration could signal a shift in how tokenized funds are managed globally, reducing costs for financial institutions.
The partnership aligns with Hong Kong’s goal of becoming a tokenized finance hub. By automating these processes, the involved entities aim to leverage cost efficiency and heightened transparency in financial systems.
Experts Predict Rapid Expansion of Tokenized Finance
Similar initiatives, like JPMorgan’s Onyx, explored tokenized securities, but without the same level of public-private collaboration. Experts view this as a pivotal moment in tokenized asset management.
Fernando Vazquez, Capital Markets President, Chainlink Labs, said, “The partnership represents a major milestone for automating fund issuance and lifecycle management in a secure, transparent, and compliant way.” Historical data suggests that regulatory-backed pilots hold promise for wider adoption. As more institutions participate, the tokenized finance sector may expand rapidly, aligning with broader financial market trends.
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