Hong Kong’s push to become a global hub for digital finance has gained fresh momentum with a new partnership linking UBS Asset Management, Chainlink Labs, and DigiFT.
The trio announced on Sept. 11 that they are developing an automated framework for tokenized funds, backed by the city’s Cyberport program.
The project is part of the Cyberport Blockchain & Digital Asset Pilot Subsidy Scheme, a government-backed initiative offering funding and regulatory breathing room for Web3 experiments. By embedding blockchain technology into fund distribution, the collaboration aims to deliver a working template for how traditional finance can adopt tokenization at scale.
“Cyberport is at the heart of Hong Kong’s digital transformation,” said DigiFT founder Henry Zhang, adding that the effort combines regulated infrastructure with institutional expertise to “build the next chapter of tokenized fund distribution.”
The joint system is designed to overhaul the labor-intensive processes that dominate today’s $132 trillion asset management industry. By using smart contracts for every stage — from issuance to redemption — the framework promises to reduce errors, cut transfer times, and lower operating costs.
UBS will integrate its proprietary UBS Tokenize platform, Chainlink will supply its Digital Transfer Agent for on-chain validation, and DigiFT will provide the licensed distribution channel through its Singapore and Hong Kong operations. In practice, this means investors could subscribe or redeem fund shares via smart contracts that automatically trigger the required actions across UBS’s tokenized products.
Chainlink Labs executive Fernando Vazquez framed the initiative as a milestone for the industry, noting that it demonstrates how tokenized funds can be managed transparently within Hong Kong’s regulatory system. “This shows what future capital markets may look like once blockchain is embedded across their operations,” he said.
If successful, the project could serve as a catalyst for bringing tokenized financial products out of pilot stages and into mainstream investor portfolios.
