DigiFT Partners with Chainlink to Enhance Liquidity and Security for Tokenized Money Market Funds
Singapore-based digital asset exchange DigiFT has announced a collaboration with Chainlink to leverage its Cross-Chain Interoperability Protocol (CCIP) and Proof of Reserve solution. This partnership aims to increase the reach and transparency of DigiFT’s tokenized money market funds by expanding access across multiple blockchain networks and enabling enhanced verification for asset-backed tokens.
DigiFT, which operates under the oversight of the Monetary Authority of Singapore (MAS), is the first regulatory-compliant exchange in Asia dedicated to real-world asset (RWA) tokenization on public blockchains. By integrating Chainlink’s CCIP, DigiFT can securely transfer its money market fund tokens across different blockchains, allowing new investor access to tokenized financial assets that are traditionally limited to single-chain platforms. This expanded cross-chain interoperability improves liquidity in secondary markets and, in turn, may attract greater institutional interest in blockchain-based assets.
Additionally, DigiFT will implement Chainlink’s Proof of Reserve system to regularly verify the reserves backing its money market fund tokens. Proof of Reserve will reinforce the security of the minting function on DigiFT’s platform, ensuring that the underlying assets supporting these tokens are transparently verifiable on-chain. DigiFT Founder and CEO Henry Zhang emphasized that this collaboration will help create a bridge between traditional finance and the decentralized finance ecosystem by enhancing the transparency, security, and accessibility of tokenized assets.
Improved Market Liquidity and Institutional Interest
By adopting Chainlink’s CCIP, DigiFT can enable secure cross-chain token transfers, facilitating broader access and increased liquidity for tokenized money market funds on its platform. This liquidity could support the efficiency of markets and, in turn, encourage institutional asset managers to explore tokenized assets within their investment strategies.
“Chainlink CCIP is a foundational technology for enhancing blockchain-based capabilities through secure and seamless interoperability,” said Zhang. “By adopting Chainlink CCIP and Proof of Reserve, we are not only expanding DigiFT’s cross-chain reach but also elevating the transparency, security, and reliability of our tokenized RWA offerings. This collaboration strengthens our ability to create an interconnected ecosystem between Web3 and traditional financial services, driving greater adoption and trust among institutional investors.”
Chainlink’s Role in Cross-Chain Interoperability
Chainlink’s CCIP provides a secure infrastructure for transferring assets across blockchains, which is increasingly essential as more traditional financial products transition to decentralized platforms. Chainlink has facilitated over $16 trillion in transaction value through its ecosystem, providing access to off-chain data, computation, and cross-chain operability for sectors like banking, DeFi, and global trade.
“Chainlink CCIP and Proof of Reserve are crucial components for both onchain protocols and traditional financial institutions,” said Vince Turcotte, Head of Business Development, Banking and Capital Markets, APAC at Chainlink Labs. “We look forward to working with DigiFT to expand the utility and accessibility of their tokenized RWAs with the Chainlink platform.”
DigiFT’s Regulatory Compliant Platform for Real-World Assets
Founded in 2021, DigiFT provides a platform for primary issuance and secondary market trading of tokenized assets, with continuous liquidity enabled by an Automated Market Maker (AMM) model. Licensed by MAS, DigiFT offers blockchain-based security tokens tailored to the needs of financial institutions, while adhering to stringent regulatory requirements in the markets where it operates. DigiFT’s founding team includes former executives from major financial institutions such as Citi, Standard Chartered, Morgan Stanley, and the Shenzhen Stock Exchange, combining expertise from both traditional and digital finance.
This partnership with Chainlink positions DigiFT as a forward-looking participant in the tokenized asset market, with enhanced security and operability that align with institutional standards for transparency and regulatory compliance. By implementing Chainlink’s solutions, DigiFT seeks to advance institutional adoption of public blockchain technology, paving the way for a more interconnected and liquid market for tokenized financial assets.
Image by Steffen Junginger from Unsplash
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