Chainlink, a blockchain oracle platform, suggests that asset managers have a golden opportunity to embrace tokenization as financial assets move into the digital realm. In their report, titled “Beyond Token Issuance,” Chainlink explains the potential benefits and how real-world data and interoperability could unlock the value of tokenized assets.
According to Chainlink, asset managers stand to gain a lot from tokenization. They can unlock dormant capital, increase asset availability, and even create new revenue streams.
Additionally, tokenization allows for the creation of unified client portfolios, helps differentiate service offerings, and improves risk management through automated risk assessment.
Chainlink emphasizes that blockchains are becoming an essential part of the financial ecosystem. Traditional and blockchain-based assets are merging into one, driven by digitization. This shift is because blockchains offer better infrastructure for storing and transacting assets.
Ryan Lovell, Director of Capital Markets at Chainlink Labs, compares the earlier phase of tokenization to building a car shell without an engine or interior. It was just a basic concept.
Now, Lovell believes the focus is shifting towards building foundational infrastructure to make tokenized assets work seamlessly across different systems and chains.
Furthermore, Lovell sees the future of tokenization as integrating real-world data and allowing interoperability across various chains and systems, saying, “This was kind of like building a concept car without an engine or interior — just a basic shell of what the future will hold.”
In conclusion, Chainlink is actively working on initiatives to enable institutions to do more than just issue tokens. They aim to facilitate managing tokenized assets across their lifecycle and enable transactions across different chains.
Also Read: Chainlink Launches Cross-Chain Interoperability Protocol
