Chainlink’s LINK Rises on Hong Kong Tokenization Pilot with DigiFT and UBS

Chainlink (LINK) climbed past $24, gaining about 2.5%, after announcing a strategic partnership with DigiFT and UBS to automate tokenized fund operations in Hong Kong. The collaboration has secured official approval under the city’s Cyberport Blockchain and Digital Asset Pilot Subsidy Scheme, a move that could accelerate the development of tokenized financial infrastructure.

• Chainlink, DigiFT, and UBS will build automated infrastructure for tokenized financial products in Hong Kong.
• Project received approval under the Cyberport Blockchain and Digital Asset Pilot Subsidy Scheme.
• System uses smart contracts to automate distribution, settlement, and lifecycle management of tokenized funds.
• Chainlink also launched its Cross-Chain Interoperability Protocol on the Aptos blockchain, expanding DeFi connectivity.

On Thursday, Chainlink’s LINK token surged to $24, outpacing the CoinDesk 20 Index’s 1.5% gain, after the oracle provider revealed a joint initiative with DigiFT and UBS. The partnership aims to automate the entire process of tokenized fund operations in Hong Kong, a city rapidly positioning itself as a global hub for digital assets.

The trio secured approval under Hong Kong’s Cyberport Blockchain and Digital Asset Pilot Subsidy Scheme, which supports projects that enhance the region’s fintech and digital asset infrastructure. According to the announcement, the collaboration will focus on streamlining how tokenized funds are distributed, settled, and managed—a process traditionally bogged down by manual paperwork and prone to errors.

Here’s how the system works:

• Investors place orders for UBS’s tokenized products using DigiFT’s regulated distributor smart contracts.
  
• Chainlink’s Digital Transfer Agent framework then processes these transactions and records them onchain.
  
• This triggers issuance or redemption on UBS’s token contracts, making the process faster, cheaper, and more reliable.
  

By replacing manual steps with smart contracts, the project aims to cut costs, improve efficiency, and create a standardized infrastructure for tokenized financial products.

In parallel, Chainlink expanded its global footprint by launching its Cross-Chain Interoperability Protocol (CCIP) on the Aptos blockchain. This move strengthens Chainlink’s ability to provide enterprise-grade connectivity solutions for decentralized finance (DeFi) applications and corporate treasury management, further broadening its multi-chain reach.

From a market perspective, CoinDesk Research’s technical analysis noted that LINK has shown a strong rebound since a 20% pullback in mid-August. Volume-based support has formed around the $23.60 level, with sustained buying interest reinforcing the bullish breakout.

Final Thought

With its partnership in Hong Kong’s tokenization pilot and the CCIP launch on Aptos, Chainlink continues to prove itself as a leading provider of real-world blockchain solutions. The LINK token’s price surge reflects growing market confidence in Chainlink’s ability to drive institutional adoption of tokenized financial products—an important step in the global evolution of decentralized finance.