DigiFT and UBS Announce Chainlink-Supported Pilot to Tokenize Funds Under Cyberport Program

DigiFT and UBS have launched a pilot project to tokenize funds, supported by Chainlink’s oracle infrastructure. The announcement contributed to a 2.5% rise in LINK, pushing it near $24. The initiative aims to automate the operation of tokenized funds within regulatory frameworks, blending institutional expertise with decentralized technology.

Pilot and Roles

The collaboration is part of Hong Kong’s Cyberport Blockchain & Digital Asset Pilot Program. DigiFT—holding Type 1 and 4 licenses from the SFC—will provide a regulated platform for token issuance and trading via smart contracts. UBS brings institutional asset management and governance experience. The goal is to enable secure, compliant access to on-chain assets for traditional investors.

Chainlink’s Contribution

Chainlink will supply Price Feeds and Chainlink Functions to deliver real-time market data and enable on-chain execution. Its decentralized oracles help reduce single points of failure and allow automated processes like valuations, subscriptions, and liquidations within tokenized fund structures.

Benefits for Investors and Institutions

The pilot aims to streamline investing for both retail and institutional participants:

• On-chain transparency for orders and positions

• Automated settlement, reducing administrative overhead

• Regulatory alignment through licensed, supervised infrastructure

• A bridge between traditional finance (TradFi) and decentralized finance (DeFi)

Challenges and Risks

The project isn’t without hurdles:

• Smart contract vulnerabilities could pose security risks

• Reliance on oracles and custodians may reduce decentralization

• Cross-border regulatory fragmentation complicates interoperability

• Overly rigid rules could stifle practical innovation