Tokenization of real-world assets would be the next big frontier for the industry.

Tokenization of real-world assets is considered the next big frontier for the blockchain industry, and Chainlink continues to expand its global partnerships with a focus on tokenization of real-world assets and cross-chain transactions .

On May 21, the world’s largest Oracle blockchain network announced that it was expanding its partnership with Arta TechFin, a Hong Kong-based asset management and financial services company, to integrate real-world assets into the chain. .

Eddie Lau, CEO of Arta Techfin, said the partnership “aims to address market scarcity for a comprehensive solution that addresses issues from initial off-chain creation and secondary trading to improved security some products “.

According to Chainlink, real-world assets are worth up to $867 trillion globally. Tokenization would increase the velocity of money by opening previously illiquid assets, such as collectibles and real estate, to electronically tradable markets.

Real estate, in particular, is known for being highly illiquid and incredibly difficult to manage. Assuming there is no cash buyer, a typical real estate transaction in the United States takes between 30 and 60 days to close.

Once the deal is completed, reselling the home or tapping into the equity subjects the homeowner to complex and arcane processes that can also take months.

Chainlink’s real-time price feeds and CCIP interoperability protocol, which allow the Oracle Network to interact with other blockchains and transfer assets between chains, are at the heart of the blockchain’s asset chaining. real world.

Diagram showing a simplified explanation of Chainlink’s CCIP protocol, source: Chainlink.

In 2023, SWIFT, the interbank messaging protocol, announced that it would collaborate with Chainlink to test the transfer of value between blockchain protocols.

about: Chainlink joins Rapid Addition to create enterprise blockchain adapter

Recently, Chainlink conducted a similar pilot program with the Depository Trust & Clearing Corporation (DTCC) and several banking giants such as BNY Mellon, JP Morgan, and Edward Jones.

The intended goal of the pilot was to bring financing data from on-chain banks.

However, Chainlink is not the only player in the industry working to integrate real-world assets into the blockchain.

Companies like Ripple Labs continue to sign partnership agreements with the purported goal of tokenizing real-world assets such as real estate, stocks, mortgages, and bonds.

According to CEO Brad Garlinghouse, Ripple has partnered with JPMorgan, Santander and IBM to tokenize assets on its blockchain ledger, one of the company’s main goals.

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