Chainlink, UBS, and DigiFT have launched a pilot project in Hong Kong to automate the tokenization of real-world assets (RWA). This initiative aims to develop a regulated blockchain-based framework that automates the distribution, settlement, and lifecycle management of tokenized products, potentially reducing manual errors. DigiFT, a tokenized asset exchange, is assessing whether the technological framework aligns with compliance standards in Hong Kong. The automation of RWA tokenization funds can enhance operational efficiency, lower costs, and may boost revenue for fund operators, benefiting investors. The RWA tokenization sector has surged in 2025, with a reported market capitalization reaching $66 billion. This growth has been fueled by the entry of traditional finance institutions into the crypto space and increasing integration of decentralized finance solutions. Institutions are now backing tokenized funds with US Treasuries, showcasing a merging of conventional finance practices with blockchain technology.

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