Amberdata: RWA tokenisation gains significant momentum

With this infrastructure in place, participants can identify and value the asset(s), establish legal agreements which can be encoded into self-executing smart contracts to ensure compliance and distribute them to investors and participants who can trade them on secondary markets. Ongoing management of the tokenised assets is often facilitated through blockchain-based governance mechanisms.

“This paradigm shift is not only reshaping traditional investment practices but also paving the way for innovative financial products and services that were once unimaginable,” says Isabella. “Amberdata is pioneering efforts to provide market participants with the tools they need to navigate the complexities of RWA tokenisation.”

Fungible and non-fungible tokens

The use of tokenised RWAs can be divided into two main categories – fungible and non-fungible tokens. 

Fungible tokens

Usually used for transactions, fungible tokens are powered by Ethereum token standards like ERC-20 and encompass assets such as stablecoins, commodities, treasuries and bonds.

Non-fungible tokens

Smart contracts powered by Ethereum token standard ERC-721, non-fungible tokens represent unique assets that are not readily interchangeable with other tokens. They include assets such as art, collectables, real estate, intellectual property, royalties and luxury assets. 

The benefits of RWA Tokenisation

Leading organisations such as European Investment Bank (EIB), Franklin Templeton, KKR, J.P. Morgan, Siemens, The Bank of Korea, Crédit Agricole CIB, Swedish Bank SEB and government bodies are investing in RWA tokenisation, seeing the potential that the solution holds. 

Creating opportunities for both asset managers and investors, those participating can benefit from: 

• Increased efficiency during transactions with the use of blockchain technology
• Greater liquidity to traditionally illiquid assets
• Lower costs across the investment process, cutting out the middle-man costs
• Increased transparency with a single source of truth
• New financial products previously not possible with traditional markets.

“While RWA tokenisation has yet to be fully integrated into financial markets, market cap and utilisation projections suggest significant growth potential and indicate that a profound shift in traditional investment practices is underway,” says Isabella. 

“As we look ahead, the continued integration of digital asset data into RWA infrastructure will be essential for driving sustainable growth, mitigating risks and unlocking the full potential of tokenised assets.”

To find out more about RWA Tokenisation and the services that Amberdata can provide, click here.

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