Chainlink and Arta TechFin Collaborate to Tokenize Real-World Assets
Summary:
Chainlink, the world's leading blockchain oracle network, is expanding its partnership with Hong Kong-based Arta TechFin to tokenize real-world assets. The move addresses market demand for comprehensive solutions that manage complex transactions off-chain. Chainlink's protocol allows for interaction among different blockchains, efficiently digitizing previously non-liquid assets and streamlining trading processes. They have also run a similar pilot program with banking giants like BNY Mellon, JP Morgan, and Edward Jones. Meanwhile, other firms, such as Ripple Labs, also continue efforts to tokenize real-world assets.
Tokenizing real-world assets via blockchain is being hailed as the next significant leap in the industry. In line with this, Chainlink is forming global relationships with an emphasis on tokenization and cross-chain operations. On May 21, the world's leading blockchain oracle network, declared the expansion of their collaborations with Arta TechFin, a Hong Kong-based financial services firm and asset manager. The partnership intends to digitalize real-world assets. Eddie Lau, the CEO of Arta TechFin, stated that the alliance aims to meet the market demand for a comprehensive solution that handles pain-points from off-chain initiation and secondary dealings to heightened product trustworthiness.
Chainlink claims that real-world assets contribute a massive $867 trillion globally. Tokenization can accelerate the speed of money by making previously non-liquid assets like collectibles and real estate available for electronic trading. Real estate, specifically, has a reputation for being notoriously non-liquid and extremely challenging to deal with. In the US, a regular real estate transaction, barring any cash buyer, takes about one or two months to close. After closure, reselling a property or accessing equity subjects the owner to lengthy procedures that can take several months.
The process of onboarding real-world assets are facilitated by Chainlink's real-time price feeds, and the CCIP interoperability protocol. This protocol allows the oracle network to interact with other blockchains and transfer different assets. By 2023, SWIFT, the interbank messaging protocol, announced their collaboration with Chainlink to explore value transfer between blockchain protocols.
Chainlink has also recently run a similar pilot program with the Depository Trust & Clearing Corporation (DTCC) and numerous banking powerhouses like BNY Mellon, JP Morgan, and Edward Jones. The primary objective of this pilot was to transfer bank data onto the blockchain.
However, Chainlink isn't the sole entity in the industry aiming to bring real-world assets to blockchain. Companies like Ripple Labs continue to forge partnerships with the motive of tokenizing real-world assets. Brad Garlinghouse, the CEO of Ripple, announced partnerships with JPMorgan, Santander, and IBM for the purpose of tokenizing assets on its blockchain ledger.
Published At
5/22/2024 12:18:40 AM
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