Chainlink Amplifies Global Partnerships to Boost Real-World Asset Tokenization
Summary:
Chainlink expands its partnership with Hong Kong-based firm, Arta TechFin, aiming to bring real-world assets on-chain. This collaboration is geared toward addressing issues like illiquidity, particularly in the real estate market, and streamlining transactions. These initiatives are facilitated via Chainlink's real-time price feeds and CCIP interoperability protocol. Similarly, Ripple Labs continues to pursue partnerships aimed at tokenizing real-world assets.
Tokenizing tangible assets is set to be the next significant leap for the blockchain sphere, with Chainlink intensifying its global alliances, especially those pertaining to such tokenization and inter-chain operations. Chainlink, the world's premier blockchain oracle network, declared on May 21 that it's amplifying its collaboration with Arta TechFin, an asset management and finance services firm based in Hong Kong. The alliance is designed to facilitate the on-chain inclusion of tangible assets. CEO of Arta TechFin, Eddie Lau, suggested that the collaboration has the objective of providing a comprehensive solution that resolves real-world issues emerging from off-chain primary and secondary trading, thus enhancing product integrity.
Chainlink reveals that real-world assets have an astounding value of $867 trillion globally. They contend that tokenization could accelerate the speed of money circulation by releasing previously illiquid assets, such as collectors' items and property, to digitally trader-friendly markets. In particular, property is notorious for its high illiquidity and transactional difficulty. If you can't make an all-cash purchase, the time required for a standard real estate transaction in the U.S. is generally 30 to 60 days.
The closing of the transaction is further complicated by the need to resell or to gain access to equity, which can introduce the owner to intricate and obscure operations that demand lengthy processing periods. Crucial to the process of incorporating real-world assets on-chain are Chainlink's ever-updating price feeds and its interoperability protocol, CCIP. These allow the oracle network to engage with other blockchains and transfer assets between chains.
In 2023, SWIFT, the messenger protocol used by banking institutions, partnered with Chainlink to explore the possibilities of value transfer between different blockchain protocols. More recently, Chainlink initiated a parallel pilot project with the Depository Trust & Clearing Corporation (DTCC) and various banking powerhouses such as BNY Mellon, JP Morgan, and Edward Jones. The aim was to bring the banks' fund data on-chain.
Still, Chainlink isn't the sole company in the field looking to bring real-world assets to the blockchain. Companies like Ripple Labs persist in contracting partnerships with tokenization of tangible assets, including property, stocks, loans, and bonds, as their goal. According to CEO Brad Garlinghouse, partnerships have been established with JPMorgan, Santander, and IBM, with asset tokenization on their blockchain ledger as a major goal for the firm.
Published At
5/22/2024 12:18:00 AM
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