Tokenizing Real-world Assets. According to reports, the blockchain industry’s next great frontier is real-world asset tokenization. Chainlink is working to develop international alliances with a focus on cross-chain transactions and real-world asset tokenization. To integrate real-world assets onto the blockchain, Arta TechFin, a financial services and asset management firm based in Hong Kong, is expanding its cooperation with the largest blockchain oracle network in the world, which was first revealed on May 21.
The collaboration “aims to satisfy market scarcity for an end-to-end solution that addresses pain points from off-chain primary origination and secondary trading to enhanced product integrity,” according to Eddie Lau, CEO of Arta Techfin. As per Chainlink, the total value of real assets worldwide is an astounding $867 trillion. By creating electronically tradeable markets for formerly illiquid goods like real estate and collectibles, tokenization would speed up the flow of money.
Particularly, real estate is known for being extremely difficult to transact and highly illiquid. In the United States, the average time for a real estate transaction to close is between thirty and sixty days, assuming there isn’t a cash buyer. Reselling a property or taking out equity requires the owner to go through intricate and mysterious procedures that might take months to finish after the deal is finalized. Chainlink’s real-time price feeds and the CCIP interoperability protocol, which let the oracle network communicate with other blockchains and move assets between chains, are essential to bringing real-world assets on-chain.
Interbank Messaging Network SWIFT
The interbank messaging network SWIFT declared in 2023 that it was working with Chainlink to test value transfers between blockchain technologies. The Depository Trust & Clearing Corporation (DTCC) and significant financial institutions like BNY Mellon, JP Morgan, and Edward Jones helped Chainlink carry out a similar trial initiative more recently.
The pilot program’s planned objective was to transfer financial data from banks onto the blockchain. Chainlink is not alone in the market, though, as there are other companies aiming to add tangible assets to the blockchain. With the stated objective of tokenizing real-world assets like stocks, bonds, mortgages, and real estate, companies like Ripple Labs keep signing cooperation agreements. CEO Brad Garlinghouse claims that one of Ripple’s main goals is to tokenize assets on its blockchain ledger, and to that end, the business has partnered with JPMorgan, Santander, and IBM.
