- Singapore-based DigiFT is launching a blockchain-based AI stock index fund with underlying tokenized assets, partnering with Hash Global.
- Tokenizing both fund shares and underlying stocks may create significant operational efficiencies by eliminating traditional intermediaries and enabling automated fund management.
- The initiative targets Web3 investors and could expand investment options beyond current money market funds in the crypto space.
Singapore-based blockchain exchange DigiFT is preparing to launch a tokenized fund focused on AI stocks, where both the fund shares and the underlying equities will exist as blockchain tokens. The fund, likely to include major tech companies like NVIDIA, Apple, Microsoft, Tesla, and Alphabet, represents a significant advancement in bringing traditional financial assets fully on-chain.
DigiFT, which has already established partnerships with traditional asset managers including UBS and Invesco, is working with Hash Global on the new initiative. Their collaborative project, the DigiFT Hash Global AI Index Fund, aims to demonstrate how blockchain technology can fundamentally transform asset management operations.
“Tokenizing the underlying assets—not just fund shares—fundamentally transforms how asset management operates, creating unprecedented liquidity, transparency, and accessibility for institutional investors,” said Henry Zhang, Founder & CEO of DigiFT. “By bringing real-world equities fully on-chain, we remove inefficiencies, enhance accessibility, and set a new standard for how portfolios are structured, traded, and managed in a blockchain-native environment.”
The innovation stands in stark contrast to traditional fund issuance processes, which typically involve slow, multi-step workflows. In the United States, ETF creation relies on “authorized participants” (APs)—usually major dealers like Bank of America, Goldman Sachs, and JP Morgan—who handle more than half of all ETF issuance and redemption activities.
With fully tokenized underlying assets, fund operations could be dramatically streamlined. Smart contracts could automate the issuance of new fund shares by directly acquiring the component tokenized stocks when demand increases. Additionally, investors gain unprecedented transparency by being able to verify the fund’s holdings directly on the blockchain.
UK-based Calastone has long advocated for this approach, arguing that tokenizing underlying assets delivers the greatest efficiencies. The technology could eventually enable customized portfolio creation through automation, with model funds capable of infinite variations based on individual investor requirements.
Comparing the DigiFT approach to traditional funds reveals several distinctions:
– Fund Structure: Fully on-chain with tokenized assets and shares versus traditional financial infrastructure
– Investor Access: Direct, fractionalized ownership with digital transactions versus requiring bank accounts and intermediaries
– Operational Efficiency: Smart contract automation versus manual processes with high administrative costs
– Trading & Liquidity: 24/7 trading on a regulated blockchain exchange versus limited traditional market hours
– Compliance & Transparency: Real-time on-chain verification versus third-party custodian reporting
The initiative primarily targets Web3 investors, including corporate treasuries, high-net-worth individuals (whales), and crypto asset managers. While money market funds are already available in the crypto space, this approach could substantially expand investment options.
One notable concern remains the fact that Hash Global’s team reportedly prefers Anonymity and doesn’t appear to be licensed in a major regulatory jurisdiction, though some partner information can be found with sufficient research.
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