Chainlink ($LINK), recently published an industry report, featuring contributions from BCG, 21Shares, Paxos, and Backed.
Summary points: The report provides critical insights into:
- Tokenized Asset Landscape
- Risks of Tokenized Assets
- Chainlink as an infrastructure and risk filter for tokenized assets
Chainlink’s Cross-chain Interoperability Protocol (CCIP) publishes successful case studies including:
- ARK 21Shares Bitcoin ETF Proof of Reserves
- Backed Integration of Proof of Reserves for bToken
- Paxos Adopts Chainlink’s PayPal USD Price Feed
- DECO Proof of Concept with Teller for Undercollateralized Lending
- Chainlink DeFi Yield (CDY) Index
Everyone loves a good report, but nobody likes to give up their information to download it. So here’s the TL;DR!
The report examines the trillion-dollar tokenization megatrend and explores how asset managers and financial institutions can use the Chainlink platform as their gateway to the tokenization opportunity.
The market opportunity of tokenization is unprecedented—it has the potential to encompass virtually any asset. With the value in onchain applications sitting in the hundreds of billions of dollars, there is potential for significant growth in converting traditional assets into a superior, tokenized form.
As of March 2024, the total value of tokenized assets on public ledgers is $147B - according to data provided by DeFiLlama, CoinMetrics and The Block.
According to a survey conducted by BNY Mellon and Celent, a whopping 97% of institutional investors agree that “tokenization will revolutionize asset management”
The WEF estimates that $867T of value is ready to be disrupted by tokenization, with use cases not limited to financial assets
Vodafone’s digital asset broker (DAB) demo’ed proof of concept in 2023 with giant Sumitomo Corp, Chainlink Labs and Innowave centered around tokenizing trade documents
Benefits gained from asset tokenization:
- Real-time Settlement
- Immutability
- Global Liquidity
- Composability
- Broadened Scope
Tokens are a fundamental primitive of onchain finance just as a webpage is a fundamental primitive of the internet.
Oracles as infrastructure between blockchain networks and external systems. Refer to Chainlink’s Decentralized Oracle Networks (DONs)
A broad overview of the tokenization process.
Taxonomy and Information on Existing Types of Tokenized Assets:
- Stablecoins
- Funds
- Debt
- Commodities
- Real Estate
- Carbon Credits
- Artwork and Collectibles
Chainlink as a fully decentralized computing platform that has enabled over $10T in transaction value since its launch in 2019.
Chainlink’s ability to support institutions in enabling enhanced programmability, strategic optionality, and the highest level of security and reliability when bringing assets onchain.
Chainlink stresses that in order to capitalize on this opportunity, stakeholders in the financial services industry need to bridge their knowledge gap to be able to securely interact with the tokenization sector. By understanding the underlying opportunities, they can strategically position themselves to benefit from tokenization and future-proof their digital asset strategy.
Download and read the “Beyond Token Issuance” report here (30 pages): https://go.chain.link/reports/tokenized-asset-report Show Less
