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Chainlink Industry Report Explores Trillion-Dollar Tokenization Market Opportunity

Tokenized real-world assets are blockchain-based tokens that represent physical or traditional financial assets, such as cash, debt, securities, commodities, and real estate. Because tokenized assets confer new opportunities such as fractionalization and programmability alongside better liquidity, transparency, and risk management, the space is projected to reach $10 trillion by 2030

Having enabled over $10.5 trillion in onchain transaction value, Chainlink is the industry-standard decentralized computing platform offering a comprehensive suite of oracle services that are essential for creating and securing the entire life cycle of tokenized assets throughout the growing multi-chain economy.

As illustrated by Swift’s proof of concept, Chainlink’s Cross-Chain Interoperability Protocol (CCIP) allows traditional financial institutions to transact with a wide range of private and public blockchains using their existing infrastructure. By allowing digital assets to flow freely between private bank chains and public DeFi applications, CCIP empowers traditional financial institutions like Euroclear and ANZ to unlock exciting new use cases for tokenized assets.

A new Chainlink industry report, featuring contributions from BCG, 21Shares, Paxos, and Backed, explores the taxonomy of tokenized assets, sheds light on their risks and benefits, and provides guidance for asset managers seeking to satisfy client demand for tokenized assets backed by Chainlink’s secure and resilient infrastructure.

“Tokenization offers asset managers significant opportunities, but its broader adoption has been historically constrained by the lack of high-quality infrastructure capable of addressing the technological challenges associated with integrating the technology with traditional capital markets,” said Eliézer Ndinga, VP, Head of Strategy and Business Development, Digital Assets at 21Shares, a crypto ETF issuer which integrated Chainlink Proof of Reserve (PoR) to boost the transparency of bitcoin reserves backing the ARK 21Shares Bitcoin ETF (ARKB) earlier this year.

“Chainlink is setting a new standard for bringing utility, security, and transparency to tokenized assets, supporting asset managers looking to future-proof their strategy for the growing tokenization market.”

Download the full report.

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