- Chainlink, UBS, and DigiFLIGHT are piloting tokenization to automate the management of RWA funds.
- Pilot aims to provide a better way to manage tokenized products using blockchain infrastructure.
- The RWA tokenization market experienced very fast growthโthe institutional fund grew by 47%.
Chainlink, a blockchain-based oracle provider, and UBS, an asset manager with $5.9 trillion, have joined forces with DigiFT to conduct a pilot test to automate real-world asset (RWA) tokenization funds. The partnership aims to eliminate manual errors in the process. With a favorable and successful outcome, the project will change the future of tokenized assets, especially in the emerging market of digital finance in Hong Kong.
The pilot is included in the scheme of the Cyberport Blockchain and Digital Asset Pilot Subsidy in Hong Kong. This sandbox program tries certain crypto concepts with the aim of testing whether they have future use. It seeks to build a regulated infrastructure that utilizes blockchain and will be able to automate the distribution, settlement, and lifecycle management of tokenized products.
Tokenization Streamlines Order Processing
The program will entail investors placing subscription or redemption orders of UBS funded tokenized products through smart contracts of DigiFT. These orders will be carried out in Chainlink through their Digital Transfer Agent contracts.
Also Read: Japanโs SBI Group Picks Chainlink for Tokenization & Stablecoin Growth
The technology plays the role of infrastructure and confirms orders and stores them on the blockchain in a direct manner. The orders can contend too; once processed, they dislodge issuance or redemption events in the tokenized product contracts at UBS.
Such contracts follow standards of Capital Markets Technology Association (CMTA) Tokens. The CMTA framework will unite the issuance of the digital securities. This compliance is important to the extent that the process is governed by an internationally accepted structure of approach in tokenizing securities, which adds credibility and regulatory adherence.
The effect of the collaboration may not be limited to this study. The regulatory environment of digital assets in Hong Kong is in the process of progressing, though it is clearer than in mainland China.
The exchange, which will supply the feedback on whether the technology can comply with the standards of compliance and interoperability in the region, will be the DigiFT, a tokenized assets exchange.
The removal of manual reconciliation and adjustments in favor of automatically imposed ones on the pilot significantly increases its effectiveness; they contribute to tracking errors in many cases. Automating this process, the project will demand more efficiency and solve mistakes in managing the funds.
Explosive Growth in RWA Tokenization
The RWA tokenization market continues to record exceptional growth in 2025. Within only 30 days the amount of tokenized institutional alternative funds had risen by 47% to over $1.74 billion.
Source: rwa.xyz
This high growth is an indication of rising investor interest in tokenized products. The increased interest towards tokenized assets indicates that institutional and individual investors are becoming more and more aware of the power of tokenization as an effective approach to managing real-world assets.
Accommodating the aspects of decentralized finance (DeFi) and yield-generating are accompanied by the trend of automating RWA tokenization funds. These integrations assist in streamlining the process of tokenization at the same time as improving efficiency. The reduction in costs due to automation would benefit the fund operator and investors in that there would be a better market to the producers.
Besides automation, the overall market of the RWA tokenization is growing fast. The market capitalization of all real-life coins of assets such as tokenized assets and protocols, as reported by CoinGecko, is a tally of $66 billion. This is evidence of an increment of 1.8 percent even within the last 24 hours, demonstrating the rise in the demand of the tokenized solutions.
Financial organizations, such as BlackRock and Franklin Templeton, have already adopted tokenized investments, which are backed by U.S. Treasuries. Crypto exchanges, including Kraken and Bybit, have begun to venture into tokenized stocks as well. The overlap between conventional finance and digital assets has proved that tokenization is becoming a generally accepted and utilized concept across the industries.
Also Read: Chainlink Joins SEC Crypto Task Force Amid Innovation Exemption Proposal for Tokenization
