Asset tokenization is on fire as TradFi jumps on board

Asset tokenization is surging. Major players in traditional finance are singing tokenization’s praises and coming around to tokenizing real-world assets. Here’s what you need to know:

In Cheesecake Labs’ Newsletter:

• Traditional finance companies are going nuts for asset tokenization
• Tokenization Insights from #Consensus2023?
• Your asset tokenization cheat sheet

Traditional finance is all aboard the tokenization train

US banking giant 摩根大通 call asset tokenization a “killer app for traditional finance.” They’re investing heavily in tokenization and have already processed nearly $700 billion in short-term loan transactions using their digital assets platform Onyx.

And they’re not the only ones. Franklin Templeton recently launched the Franklin OnChain U.S. Government Money Fund on the Stellar blockchain network. The Fund is the first of its kind to use a public blockchain to process transactions and record share ownership.

Meanwhile, another major player is mining for success with tokenized gold. Bank of America recently announced the tokenized gold market surpassed $1 billion in value, and they see the tokenization of real-world assets like precious metals as a “key driver of digital asset adoption.”

Tokenization was the talk of the town at Consensus 2023

Cheesecake Labs recently attended Consensus 2023, the world’s largest event for #cryptocurrency, #blockchain, and #Web3 markets held by CoinDesk . While we were there, we heard lots of chatter about asset tokenization.

In one panel, Securitize CEO Carlos Domingo pointed out that the boom in real-world tokenization is a lot like the evolution of cloud computing. The cloud was initially seen as risky but is now used by major corporations and governments worldwide. Domingo believes that asset tokenization is surging because major firms are getting more comfortable with blockchain technology. He expects to see real-world assets tokenized on private blockchains, then permissioned blockchains, and eventually more public blockchains as comfort levels continue to rise.

Next stop: Kinetic 2023 by Stellar Development Foundation

We are thrilled to announce that the Cheesecake Labs team, represented by Fifo Zatti (Engineering Manager and Blockchain Specialist), Doug Silva (Solutions Architect and CBDO), and Marcelo Gracietti (CEO), will be attending Kinetic 2023 as preferred Stellar Integration Partner.

The event takes place on May 22-24th in Buenos Argentina and we will be discussing ways to explore and solve real-world problems with Blockchain in businesses, including asset issuance.

Will you be attending too? ?? Send us a direct message, and our team will arrange a time to chat over a cup of coffee!

All about asset tokenization

Asset tokenization is clearly gaining ground with traditional finance institutions, and this trend shows no signs of slowing down with real-world tokenization expected to keep surging in 2023.?

So what do businesses need to know about asset tokenization to reap the benefits??

Here’s our cheat sheet:

Asset tokenization basics

• What is it? Asset tokenization is the process of creating a digital representation of a tangible and tradable asset using blockchain technology.
• What types of assets can you tokenize? Almost anything! Equity, bonds, investment funds, fan tokens, commodities, and much more.
• What does it mean for the future of banking? Asset tokenization has the potential to completely transform the financial industry by creating a more efficient, more democratic system.?

Asset tokenization benefits

• Interoperable: Assets on public blockchains allow interoperability between market participants meaning transactions are faster, more transparent, and automatically updated.
• Affordable: Tokenization can be 35% to 65% cheaper than traditional securitization and lets banks tap into new markets while opening up access to a wider group of customers.?
• Programmable: Digital tokens are completely customizable. They can be programmed to automate dividend or interest payments, or even automatically invest in a range of tokens based on pre-established criteria.

These are just a few quick tidbits to get you started. Check out our new blog post for a complete understanding of asset tokenization.

Learn more about the possibilities of blockchain development

We’re very interested in blockchain technology at Cheesecake Labs. Here are just a few great posts to get you started learning more about blockchain:

• What is blockchain? A guide for getting started with blockchain in your app
• How to create borderless, blockchain payment systems?
• What Is Stellar Network And How Does It Work??
• How blockchain can reshape the global economy with CBDC?
• Tokenomics: Find Out How to Issue a Digital Token to Solve Your Business Needs?

Looking for an experienced blockchain partner to guide you through the tokenization process? Let’s chat! We can’t wait to hear about your ideas.?