UBS, Chainlink, and DigiFT launch an RWA pilot in Hong Kong: on-chain automation for regulated funds

Hong Kong confirms itself as a testing ground for the tokenization of real-world assets (RWA): UBS, Chainlink and DigiFT have launched a pilot aimed at automating subscriptions, settlement, and lifecycle management of funds on a regulated infrastructure, as reported by CoinDesk. 

According to data collected from industry reports and official communications, the pilot entered the operational phase on September 11, 2025, and received approval in the Cyberport Blockchain & Digital Asset Pilot Subsidy Scheme.

Industry analysts note that the integration of on‑chain Digital Transfer Agents and smart contracts is expected to enhance auditability and reduce manual reconciliations in back‑office processes, objectives that will be monitored through defined KPIs in the project.

Summary in Brief

• Objective: reduce reconciliation errors, increase transparency, and accelerate settlement speed in tokenized funds.
• Roles: DigiFT manages orders via smart contract; Chainlink provides the Digital Transfer Agent (DTA) contracts for instruction verification; UBS implements contracts compliant with CMTA standards.
• Context: growth of the RWA market and increased regulatory focus by Hong Kong on digital assets.
• Expected KPIs: settlement times, post-trade error rate, operating costs, and level of auditability.

What Has Been Implemented

The three companies are developing a joint solution, with end-to-end functions, for tokenized financial products. DigiFT receives subscription and redemption orders via smart contract, while Chainlink provides the Digital Transfer Agent (DTA) contracts, which verify the instructions and record them on-chain.

In fact, correctly processed orders trigger issuances, redemptions, and other lifecycle events on UBS contracts, developed according to the “CMTA Token” standard of the Capital Markets and Technology Association CMTA.

Operational flow: from on-chain signing to settlement

• Instruction: the investor sends a signed order via smart contract, using an authorized infrastructure.
• Validation: Chainlink’s Digital Transfer Agent (DTA) performs checks on eligibility, limits, and order consistency.
• Registration: the validated order is recorded on-chain, using a unique reference.
• Lifecycle: UBS contracts initiate issuance or redemption operations and update the fund’s status.
• Reconciliation: on-chain ledgers reduce discrepancies and the need for manual checks.

Regulated Infrastructure and CMTA Standard

The project adopts a configuration that prioritizes compliance, auditability, and traceability. The CMTA standards standardize the issuance and management of security tokens, facilitating interoperability and alignment with market infrastructures.

It should be noted that, for clarity, the acronyms in use are: RWA (Real‑World Assets), DTA (Digital Transfer Agent), and CMTA (Capital Markets and Technology Association).

Testing Environment in Hong Kong: The Role of Cyberport

The pilot takes place in the sandbox of Cyberport, which evaluates use cases related to decentralized identity, payments, stablecoin, and blockchain applications for social innovation. That said, the goal is to verify interoperability and regulatory requirements before a potential commercial expansion on a larger scale.

KPI and expected results of the pilot

• Time‑to‑settle: average time between order validation and on‑chain/off‑chain settlement.
• Reconciliation errors: variations in the post-trade mismatch rate compared to traditional processes.
• Operating costs: impact on back-office management and compliance, thanks to automation and the use of shared ledgers.
• Auditability: quality and granularity of logs for internal and external control.
• Interoperability: ability to integrate with custodians, banking systems, and other networks.

Key Numbers of the RWA Market

• Tokenized institutional alternative funds: recorded an increase of 47% in 30 days, with a capitalization of 1.74 billion dollars, for the period ending on August 29, 2025 (CoinGecko) and as highlighted in the research on the growth of the RWA sector from early 2025.
• Total RWA Market Capitalization: around 66 billion dollars, up by 1.8% in the last 24 hours (CoinGecko).

Simultaneously, the convergence between traditional finance and on‑chain is growing: leading international institutions and operators like Franklin Templeton and BlackRock have launched funds linked to Treasury on blockchain (BlackRock ETF analysis), while some exchanges have tested solutions of tokenized stocks in regulated environments.

Implications and Critical Angles

• Efficiency: automation can reduce costs and time, with positive impacts on operations and custody.
• Governance: a clear definition of roles among issuers, transfer agents, and oracle providers is essential for the balance between counterparties.
• Scalability: the adoption of open standards, such as the CMTA, is crucial to avoid market fragmentation.
• Regulation: coordination with authorities such as the SFC and the HKMA will be crucial to clarify requirements regarding licensing, KYC/AML, and custody, with some regulatory details still under discussion.

What Remains to be Clarified

• The specific blockchain adopted in the pilot (permissioned or public network) and the related scalability parameters.
• The number and type of funds involved, with details regarding jurisdiction and custody solutions.
• The KPI measurement methodology and the test timeframes.
• The redemption procedures in case of extraordinary events and the management of operational risks.

Next Steps

The pilot will continue with further tests and evaluations of scalability and compliance. Any commercial applications will be implemented following the results obtained in the sandbox and full alignment with local regulations.

Related Insights

• Guide: what is RWA tokenization and how does it work
• Hong Kong and digital assets: regulatory framework 2025
• Ethereum Foundation reorganizes: new strategy to tackle protocol challenges
• Standard Chartered launches spot trading of Bitcoin and Ether for institutional clients
• Ripple raises the bar: RLUSD, the stablecoin that redefines the future of global payments
• Ripple and Chipper Cash revolutionize remittances in Africa with faster and cheaper payments thanks to blockchain

Editorial Note: awaiting specific official statements from UBS, Chainlink, and DigiFT regarding the pilot in Hong Kong. Some operational details – such as the blockchain used, the number of funds involved, and spokesperson statements – will be updated as soon as further information is provided.