Real-World Data Integration: Tokenization’s Next Phase

Asset managers have a significant opportunity to tap into the world of tokenization as financial asset infrastructures continue their transition into the digital realm, according to researchers from blockchain oracle platform Chainlink. In their report titled “Beyond Token Issuance,” Chainlink delved into the potential benefits of tokenization for asset managers, such as unlocking dormant capital, increasing asset availability, and creating new revenue models. The report highlighted the ability of tokenization to enable asset managers to create unified client portfolios, differentiate their services, and enhance risk management through automated risk assessment. Chainlink argued that blockchains were becoming an integral part of the existing financial ecosystem and that traditional and blockchain-based assets were merging into a single system due to increased digitization. Ryan Lovell, director of capital markets at Chainlink Labs, explained that tokenization had been undergoing research and development for years, with institutions in the early stages of understanding its potential impact. Lovell stated that the next phase of tokenization would focus on building foundational infrastructure to enable the composability and programmability of tokenized assets across different systems and chains. The integration of real-world data and interoperability across different blockchains and traditional systems is said to unlock powerful applications with increased transparency, lower costs, and streamlined administrative processes. Chainlink is actively pursuing initiatives to enable institutions to manage tokenized assets throughout their lifecycle and transact across the cross-chain economy.