Chainlink has announced a strategic partnership with the Blockchain Association to launch a “Tokenized in America” initiative.
The initiative is a crucial move, aiming to expand the acceptability of tokenized assets in the US, especially at the state government level.
The Blockchain Association is a Washington, D.C.-based association spearheading interests of the cryptocurrency industry in the country. Its members include the industry’s top investors, firms, and projects, working to support forward-looking, friendly innovation nation policy for the digital asset economy.
While this new initiative aims to broaden the adoption of tokenized assets, it also wants to monitor and showcase the progress in this growing sector.
Why the Blockchain Association Taps Chainlink
The “Tokenized in America” program is a data resource monitoring initiative, the underlying technological cooperation between Chainlink and the Blockchain Association.
Chainlink’s expertise, which involves its decentralized oracle networks, plays a crucial role for linking real-world data and ecosystems with blockchain.
To precisely represent RWAs on-chain, Chainlink’s data sources offer verifiable and encrypted information about the underlying asset.
Therefore, this partnership means that if a state government wants to tokenize an asset (like real estate), Chainlink offers real-time data on asset’s valuation, change of ownership, and other aspects like regulatory compliance, among others.
In case of tokenized assets backed by cash and other reserves (for example, stablecoin, deposit tokens, etc., approved by a state government agency), Chainlink’s PoR infrastructure offers cryptographic proof that the digital assets are adequately collateralized by real-world assets – this helps to improve trust and openness.
With continued maturity of the tokenization sector, various state-level blockchain applications or projects are set to arise. This partnership means Chainlink’s Cross-Chain Interoperability Protocol (CCIP) would play a paramount role in facilitating efficient and encrypted communication and asset movement between such blockchain platforms, ensuring an interlinked ecosystem.
The Next-Gen Markets are the Tokenization of Assets
The collaboration between the two platforms is significant for the growth of the Web3 landscape, specifically in the tokenization sector.
The “Tokenized in America” program acts as a link that is set to further connect traditional financial instruments with the new decentralized world. By assessing progress and utility of tokenized assets at the U.S. state level, this initiative offers clarity and promotes greater blockchain applications in public services and asset management.
The development is a further proof of continued tokenization of RWAs, representing a paradigm shift, linking blockchain technology with tangible yield-bearing assets like private lending, government securities, real estate, among others.
Many major investment institutions are no longer standing on the sidelines. Institutions like Superstate, Securitize, Franklin Templeton, and others move money on-chain and tokenize funds, making it easier for institutional and retail investors to access them.
These moves provide institutions with an avenue into DeFi without extreme volatility. They also give credibility to the wider ecosystem, accelerating partnerships between TradFi platforms and DeFi networks.
