Capital markets are about to enter a new era with the tokenization of real-world assets (RWA), which consists of representing ownership rights or access to physical, digital, fungible or non-fungible assets as digital tokens on a blockchain . This trend could bring trillions of dollars of real-world value to blockchain networks, benefiting from permissionless liquidity, open access, on-chain transparency, and reduced transactional friction compared to traditional assets.
However, RWA tokenization requires high-quality data from the off-chain world, which must be provided by secure and trustworthy oracles such as Chainlink ($LINK ), the leading Web3 services platform. Chainlink is the core infrastructure that capital markets need to advance tokenization from the proof-of-concept phase to the production phase, supporting three main use cases:
- Proof of Reserve: Verifies the cross- and off-chain reserves that secure tokenized assets such as stablecoins and digital gold, increasing investor confidence and market transparency.
- Data Streams: Provides high-frequency market data to power the next generation of DeFi markets, enabling the creation of RWA-based derivatives, indices, funds and other financial products.
- Functions: Connects a smart contract to any API and performs custom Web3 computation in minutes, enabling automation, governance, management and settlement of tokenized assets.
Chainlink is already being used by several companies and projects that are leading innovation in RWA tokenization, such as Microsoft, Vanguard, DTCC, Swift, ADDX, BlackRock, Deloitte, BNY Mellon, and EY. These success stories demonstrate Chainlink’s potential to transform capital markets and open new opportunities for investors, issuers and regulators.
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