Chainlink’s LINK Rises as DigiFT and UBS Launch Tokenization Pilot in Hong Kong

What to Know:

• Chainlink’s LINK token gained 2.5%, crossing $24 after a partnership with DigiFT and UBS in Hong Kong.
• The project is part of Hong Kong’s Cyberport Blockchain and Digital Asset Pilot Subsidy Scheme.
• The collaboration aims to automate tokenized fund operations, replacing manual paperwork with smart contracts.
• Chainlink also launched its Cross-Chain Interoperability Protocol (CCIP) on the Aptos blockchain.

LINK Gains on Tokenization Push

Chainlink’s LINK token advanced 2.5% on Thursday, trading above $24 after the oracle provider announced a strategic collaboration with DigiFT and UBS. The project is designed to automate fund tokenization processes in Hong Kong, one of Asia’s most active financial hubs for digital assets.

The partnership has been approved under the Cyberport Blockchain and Digital Asset Pilot Subsidy Scheme, a government-backed initiative that funds projects bringing blockchain innovation into the financial sector.

How the Tokenization Pilot Works

At present, many fund operations rely on outdated, manual processes. Subscription and redemption requests are often paper-based, slowing down transactions and exposing institutions to unnecessary risks.

The pilot led by DigiFT, UBS, and Chainlink intends to digitize and automate these workflows:

• DigiFT will serve as the regulated distributor, enabling investors to submit orders through smart contracts.
• Chainlink’s Digital Transfer Agent framework will record and process these transactions on-chain.
• UBS will issue or redeem tokenized fund shares directly through its token contracts once orders are confirmed.

By moving these steps to the blockchain, the project aims to reduce costs, minimize operational errors, and streamline tokenized fund management.

Chainlink Expands With CCIP on Aptos

Alongside the Hong Kong pilot, Chainlink announced that its Cross-Chain Interoperability Protocol (CCIP) has gone live on the Aptos blockchain. This expansion strengthens Chainlink’s position as a core infrastructure provider, enabling secure data transfer and interoperability across blockchains.

CCIP is already being integrated into decentralized finance (DeFi) applications and corporate treasury operations, helping institutions connect seamlessly across different blockchain ecosystems.

Technical Outlook for LINK

LINK has been on a strong recovery path since mid-August, gaining nearly 20% and outpacing much of the broader crypto market. Analysts point to volume-based support at $23.60, which has been confirmed by sustained buying activity.

On the upside, a break above $25.50 resistance could open the door for a stronger bullish continuation, while failure to hold $23.60 might expose LINK to further downside pressure.

Q&A: Chainlink and the Hong Kong Tokenization Pilot

Why did Chainlink’s LINK price rise this week?

LINK gained 2.5% after Chainlink announced its partnership with DigiFT and UBS in Hong Kong to automate tokenized fund operations, creating new demand and positive sentiment.

What is the Cyberport Blockchain and Digital Asset Pilot Subsidy Scheme?

It is a Hong Kong government initiative supporting blockchain projects that strengthen the region’s financial technology ecosystem. DigiFT, UBS, and Chainlink received approval under this scheme to build tokenized fund infrastructure.

How will the project benefit investors?

Investors will be able to place fund orders through DigiFT’s smart contracts, with Chainlink’s infrastructure ensuring on-chain settlement. This eliminates paperwork, reduces delays, and lowers operational risks.

What other projects is Chainlink working on?

Chainlink has rolled out its Cross-Chain Interoperability Protocol (CCIP) on Aptos, expanding its network for decentralized finance and corporate blockchain solutions.

What are the key technical levels for LINK?

Support sits near $23.60, while resistance is around $25.50. Sustained buying above resistance could fuel further bullish momentum.