A high-quality Real-World Asset (RWA) investment platform targeting investors in Greater China is starting to take shape.

Blockchain oracle platform Chainlink(LINK) announced on Thursday that it’s partnering with major global financial services company UBS and institutional tokenized asset exchange DigiFT to automate the on-chain process for tokenized funds.

UBS to Tokenize Financial Products as RWAs

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SponsoredRWA refers to tokenizing traditional financial assets on a blockchain to create a more efficient trading environment. However, simply issuing an asset on a blockchain is not enough for a seamless implementation.

The process requires various components to work together. These include advanced smart contract technology, handling subscription/redemption orders for tokenized products, and various financial instruments.

In an X post on Thursday, Chainlink stated that its collaboration with UBS and DigiFT will make this possible. Once the platform is complete, investors can buy and sell UBS’s tokenized products through DigiFT’s regulatory-approved smart contracts. Chainlink’s Digital Transfer Agent (DTA) smart contract will handle the entire process and record it on the chain.

Chainlink explained that this regulated, blockchain-based solution will automate tokenized product distribution, transfer, and lifecycle management, reducing manual errors and providing significant cost savings for the $132 trillion global asset management industry.

DigiFT is a next-generation exchange for tokenized Real-World Assets (RWAs), licensed by the Monetary Authority of Singapore (MAS) and the Hong Kong Securities and Futures Commission (SFC).

“Hong Kong is rapidly emerging as a leading center for regulated digital assets. Moreover, our project’s selection under the Blockchain & Digital Asset Pilot Subsidy Scheme reflects DigiFT’s commitment to building long-term infrastructure in the city,” said Kevin Loo, Hong Kong CEO of DigiFT.”

He added, “By working alongside UBS and Chainlink, we are creating solutions that meet institutional standards.” These solutions also strengthen Hong Kong’s position as a global hub for tokenized finance.

As of the publication of this article, Chainlink (LINK) is trading at $23.73, up 1.35% from the previous day.