Chainlink, a blockchain oracle provider, and UBS, a $5.9 trillion asset manager, have partnered with DigiFT for a pilot study to automate real-world tokenization funds. This feature could eliminate manual errors, according to the companies.
If successful, the study could have implications for RWA tokenization in Hong Kong, a special administrative region of China.
According to the announcement, the three groups are “developing a regulated blockchain-based infrastructure designed to automate and streamline the distribution, settlement, and lifecycle management of tokenized products […].”
The study is part of Hong Kong’s Cyberport Blockchain & Digital Asset Pilot Subsidy Scheme, a sandbox that tests new crypto ideas for future implementation in Hong Kong.
According to the project’s workflow, investors first submit subscription or redemption requests for UBS’s tokenized products through DigiFT’s smart contracts. Those instructions are then processed by Chainlink’s Digital Transfer Agent contracts, which act as the infrastructure layer to verify the orders and record them directly onchain.
Once processed, the orders trigger the corresponding issuance, redemption and other lifecycle events on UBS’s tokenized product contracts, which is said to follow the Capital Markets Technology Association (CMTA) Token standards, a framework developed in Switzerland to harmonize the issuance of digital securities.
Some other crypto ideas under consideration in Cyberport are decentralized identity, payments and stablecoins, and blockchain for social innovation and digital experience.
Unlike mainland China, Hong Kong has a clear regulatory framework for digital assets. However, it is still subject to China’s rules, such as the reported forthcoming crypto restrictions on Chinese companies operating in the administrative zone.
DigiFT, an exchange that specializes in tokenized assets, is providing feedback on whether the technological implementation meets the compliance and interoperability requirements of the zone’s financial institutions.
Manual reconciliation and adjustments of funds can result in tracking errors or situations where the value of a fund doesn’t equal the value of the underlying asset.
Trends in automation of RWA tokenization funds include decentralized finance integrations and yield generation. Because automation can increase efficiency, implementing it can lower costs, which brings in more revenue for the fund operator or is passed on to the investors.
Related: $400T TradFi market is a huge runway for tokenized RWAs: Animoca
RWA tokenization on the rise in 2025
RWA tokenization has gained momentum in 2025 as institutions have entered crypto and crypto exchanges have dabbled in traditional finance areas. For a 30-day period ending on Aug. 29, tokenized institutional alternative funds jumped 47% to $1.74 billion, and the overall RWA tokenization market cap has largely trended upward in 2025.
According to CoinGecko, the market capitalization of all real-world asset coins, which include protocols and tokenized assets, has reached $66 billion at this time of writing. That number is up 1.8% in the past 24 hours.
Traditional finance institutions and crypto exchanges have cross-pollinated the world of real-world asset tokenization. BlackRock and Franklin Templeton have funds backed by US Treasurys, and Kraken and Bybit have explored tokenized stocks.
Magazine: Can Robinhood or Kraken’s tokenized stocks ever be truly decentralized?
