Tokenization’s next phase requires real-world data integration — Chainlink

According to Chainlink’s research team, asset managers stand to gain significantly by participating in the tokenization of financial assets as the digital infrastructure for finance continues to evolve.

In a report named “Beyond Token Issuance,” Chainlink, a blockchain oracle platform, outlined the potential for growth and detailed how interoperability and access to real-world data can enhance the worth of digital asset tokens.

Tokenization’s next phase requires real-world data integration — Chainlink

In the report, it was outlined how tokenization could bring significant advantages to asset managers. These benefits encompass releasing previously untapped funds, increasing liquidity for assets, and generating new income streams through innovative business models.

In addition to the mentioned benefits, Chainlink highlighted that asset managers could also:

Inside the report, Chainlink emphasized that blockchains are increasingly becoming a crucial part of the current financial system. Furthermore, they pointed out that there is already convergence between conventional and digital assets, forming a unified financial marketplace.

According to the researchers, the advancement leading to this outcome can be attributed to the ongoing digitization process. Blockchains, with their robust structure for preserving assets and processing deals, provide a superior alternative for such tasks.

Ryan Lovell, the capital markets chief at Chainlink Labs, spoke with CryptoMoon about how tokenization has been undergoing research and exploration for quite some time now.

Lovell shared that institutions were beginning to transition basic account ledgers onto the blockchain, pondering over how tokenization could potentially influence their operations at a rudimentary level.

“This was kind of like building a concept car without an engine or interior. Just a basic shell of what the future will hold.”

Instead, the executive holds the view that the upcoming stage for tokenization will primarily focus on establishing essential frameworks. These foundations are crucial for enabling interoperability and customizability of tokenized assets across both conventional platforms and various public and private networks.

In the meantime, a Chainlink exec is convinced that integrating real-world data into tokens and enabling them to work seamlessly across various blockchains and traditional structures would lead to innovative uses.

Lovell mentioned that these applications would offer greater clarity, reduced expenses, and smoother administrative workflows compared to the conventional financial setup.

Currently, we’re developing various projects with great enthusiasm to help institutions move beyond just releasing tokens. Instead, they will be able to oversee the entire life cycle of tokenized assets and carry out transactions within the interconnected economy spanning multiple blockchains. (Lovell remarked)

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2024-04-25 11:09