Tokenisation of Real-World Assets
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IN THIS UPDATE
- Tokenisation of Real-World Assets
- What Is Tokenisation?
- Podcast Episode featuring Tokeny CEO
- ERC3643 Security Token Standard
- Add Privacy & Trust to ERC3643 Tokens
- Silent Data for Privacy
- Tokenisation at Applied Blockchain
Tokenisation of Real-World Assets
The concept of tokenisation and its potential impact has been a heated topic of debate for over a decade, with many speculating on how it will revolutionise the financial world. BlackRock, the world’s largest Asset Management firm, recently launched its first tokenised fund on the public Ethereum blockchain, and Larry Fink, CEO of BlackRock, claimed that tokenisation is the future of financial innovation.
What is Tokenisation?
Tokenisation refers to the process of converting tangible or intangible assets into digital tokens on a blockchain, representing a proof of ownership or rights. This method leverages blockchain's transparency, security, and immutability to create a more efficient and accessible market for various assets, especially traditionally illiquid assets such as real estate and artworks.
Key Benefits:
- Immediate Delivery vs Payment (DvP): Also known as “atomic settlement” or “atomic swap”, this process involves exchanging a tokenised asset for a payment token using a smart contract. The asset and funds are exchanged if both sides meet the terms of exchange, otherwise they are returned to their original owners.
- Reduced Costs and Increased Efficiency: By eliminating intermediaries and automating processes through smart contracts, tokenisation unlocks instantaneous settlements and significantly reduces fees.
- Increased Liquidity: The global reach of an efficient shared ledger infrastructure enhances liquidity. Some illiquid assets could also be fractionalised and traded with relative efficiency, introducing liquidity to previously illiquid assets and markets.
- Enhanced Transparency and Security: Immutable ledgers reduce fraud risk and build investor trust.
New Podcast Episode with Luc Falempin from Tokeny: Exploring Tokenisation
Applied Blockchain’s latest podcast with Luc Falempin, CEO of Tokeny, provides valuable insight into the new ERC3643 token standard and how it is set to revolutionise the tokenisation of real-world assets.
The standard provides a comprehensive framework for secure, and flexible asset tokenisation, using a compliant-by-design approach to meet regulatory requirements while maintaining the benefits of blockchain technology.
This standard enhances the interoperability and security of tokenised assets, making it easier for enterprises to adopt and integrate blockchain solutions.
ERC3643 Security Token Standard
Token standards, such as ERC-20 and ERC-721 have been a catalyst of innovation in blockchain and decentralised finance (DeFi).
However,
many real-world assets are subject to securities regulation, and as such require additional controls and restrictions that are not a part of the ERC-20 and ERC-721 standards.
In order to facilitate and standardise the tokenisation of regulated securities and other real-world assets, companies such as Tokeny, have helped develop new standards such as ERC3643.
Adding Privacy & Trust to ERC3643 Tokens
Our recent webinar, "Adding Privacy & Trust to ERC3643 Tokens", with our Head of Product, Andy Campbell, and President of the ERC3643 Association, Dennis O’Connell, explores the technical details of implementing ERC3643 with Silent Data, providing exclusive insights into the future of this token standard.
- WATCH THE WEBINAR - https://www.silentdata.com/webinar-adding-privacy-erc3643-16-july-2024/
Silent Data Addressing Privacy Concerns
While the ERC3643 standard has improved compliance in tokenisation, there are still limitations for enterprises wanting to implement the technology. Specifically, tokenising assets on a public chain raises serious privacy risks, as all the data would be visible to participants of the network.
Applied Blockchain has developed Silent Data [Rollup], a solution to resolve these concerns by utilising Confidential Computing and Zero-Knowledge Rollups to provide programmable privacy in smart contracts whilst still leveraging the security and trust of a decentralised blockchain.
In addition, Silent Data [Oracle] offers a solution for integrating off-chain data into smart contracts. This allows a builder to securely connect to any existing API, enabling use cases such as verifiable credential issuance and AML/KYC checks, without exposing confidential data or API keys.
- DISCOVER SILENT DATA - https://www.silentdata.com/adding-privacy-to-erc3643/
Tokenisation at Applied Blockchain
Applied Blockchain advises enterprises and startup alike, and develops production-ready systems for the tokenisation of real-world assets. We have worked across diverse sectors to tokenise commodities, invoices, artworks, and supply chains. With a focus on compliance and privacy, combined with years of experience, we have been trusted by leading organisations to unlock business opportunities using blockchain and privacy technology.
For more information on how your company can implement tokenisation and increase liquidity, please contact us.
Thank you for your continued support and trust in Applied Blockchain. Stay tuned for more updates and insights in our upcoming editions.