In the dynamic landscape of decentralized finance (DeFi), the emergence of Real-World Asset (RWA) tokenization has become a catalyst, bridging the traditional finance and blockchain realms. Qredo, at the forefront of this financial revolution, provides a unique infrastructure that plays a pivotal role in seamlessly integrating RWA into the decentralized world. Some reports highlight the potential of growth for this sector.
Global Financial Assets Value: Approximately $510 trillion (Galaxy Digital Report 2023, read here)
DeFi Assets Value: Just under 0.01% of the global financial assets value (Galaxy Digital Report 2023, read here)
Value in Traditional Markets Poised for Disruption: $867 trillion. (World Economic Forum 2021, read here)
Expected Growth Rate of Tokenization in Private Markets by 2030: 80x. (Citi Report, 2023, read here)
Percentage of Institutional Investors Agreeing on Tokenization Revolutionizing Asset Management: 97% (BNY Mellon and Celent Report (2022, read here)
Real World Assets, encompassing tangible and physical entities like real estate, commodities, and loans, have traditionally been marked by their lack of liquidity. The concept of RWA tokenization involves converting these physical assets into digital tokens, making them divisible, tradable, and accessible on blockchain platforms.
The journey of RWA into the blockchain space is not without challenges. Regulatory compliance, interoperability, and the demand for secure and scalable infrastructure are critical considerations. Blockchain technology, with its inherent transparency, efficiency, and smart contract capabilities, addresses these challenges. However, a robust and secure infrastructure is crucial for the successful execution of RWA tokenization.
Enter Qredo, a platform that stands at the forefront of RWA tokenization. Qredo provides a comprehensive and secure infrastructure that simplifies and secures tokenized RWA management. At the core of Qredo's offerings is its distributed Multi-Party Computation (dMPC) technology, ensuring secure custody of digital assets.
Qredo's architecture is designed to cater to the unique demands of RWA tokenization. The distributed Multi-Party Computation technology ensures that sensitive data, such as private keys, never exists as a whole and removes single points of attacks. Instead, it's distributed among multiple parties, enhancing security. This innovative approach not only secures assets but also streamlines complex processes, making RWA tokenization more accessible.
Qredo's impact on the RWA ecosystem is further exemplified through strategic partnerships with key players:
Maple Finance: A leader in RWA tokenization, Maple Finance utilizes Qredo's infrastructure to tokenize loans and assets. This collaboration has contributed to over $2 billion in originated loans on Maple Finance's platform. Maple Finance allows institutions to connect to capital opportunities, making debt-capital markets efficient, accessible, and transparent – read our case study
Avalanche Spruce Subnet: Qredo's integration with Avalanche Spruce Subnet expands its influence in the RWA space, offering a seamless bridge between physical and digital assets. This is a dedicated subnet tailored to optimize RWA tokenization processes – read our article
Bitbond: Qredo's partnership with Bitbond underscores its commitment to advancing tokenization technology. This collaboration facilitates secure token creation and management, fostering a secure link between traditional finance and the blockchain domain – read our article
The journey towards RWA tokenization can be viewed through the lens of solving custody, echoing the sentiments of Sergey Nazarov from Chainlink. Nazarov outlines three stages of bank adoption:
Stage 1 - Custody: This involves looking after crypto assets, driven by customer trading demands on their native chains.
Stage 2 - Tokenizing Real-World Assets: Similar to creating derivative assets, this stage prompts the question of which blockchain to choose for placing these assets. Banks might create their chains to exercise control over their RWAs.
Stage 3 - Beyond Tokenization: The future may see the development of new financial products and services, blurring the lines between traditional and blockchain-based finance.
Qredo plays a crucial role in solving the custody challenge in the journey towards RWA tokenization. Sergey Nazarov's three stages of bank adoption align with Qredo's custodial solution in Stage 1, laying the foundation for broader RWA integration. Qredo's cross-chain custody infrastructure distinguishes it, addressing the reluctance of major institutions, like BlackRock and Goldman Sachs, to engage with centralized exchanges like Binance.
The ability to choose an ERC-20 bridge and secure custody or deployment in DeFi on another chain through Qredo becomes a key advantage. Custody for asset-backed tokens, tradable across any network, enhances liquidity potential. The absence of cross-chain custody infrastructure limits the monetization potential of RWAs. Qredo's solution offers a secure bridge between the physical and digital realms of finance, propelling the industry towards a future where decentralized assets are seamlessly managed and transacted.
As the financial landscape evolves, Qredo's role as an infrastructure enabler becomes more pronounced, steering the course of innovation and unlocking the true potential of real-world assets on the blockchain. The Qredo platform is not just witnessing but actively driving the radical transformation of the financial landscape, where the physical and digital realms converge seamlessly.