Tuesday, 8 July 2025

Asset Tokenization: Reshaping the Financial Markets

 



🔍 What Is Asset Tokenization?


It’s the process of representing real-world financial assets (e.g. equities, bonds, real estate, carbon credits) as digital tokens on a programmable ledger (blockchain). This enables real-time, transparent, and automated asset exchange with reduced reliance on intermediaries.

🧩 Five Key Benefits Identified by WEF

  1. Shared System of Record – Single source of truth with real-time visibility.
  2. Flexible Custodial Models – From full custody to self-custody via private keys.
  3. Fractional Ownership – Democratizes access to traditionally illiquid markets.
  4. Composability – Seamless multi-asset operations and collateral reuse.
  5. Programmability – Smart contracts automate transactions and compliance.

💼 Real-World Use Cases


    ✔ Tokenized sovereign and corporate bonds (EIB, HKMA, UK digital gilts)
    ✔ On-chain money market funds (Franklin Templeton, Fidelity)
    ✔ Tokenized private equity and real estate, improving liquidity and access
    ✔ Carbon credits and commodities (e.g. gold) as tokenized investment instruments
    ✔ Collateral management via platforms like JPM’s TCN and SIX DCS

⚠️ Challenges to Adoption

  • Fragmented global regulations
  • Cross-chain interoperability limitations
  • Legal uncertainty in ownership enforcement
  • Legacy financial infrastructure incompatibilities
  • Cybersecurity and key management risks

📈 Tokenization is not just a tech upgrade—it’s a reimagining of how value is created, exchanged, and governed in global financial systems.

 Source: World Economic Forum (WEF)


Thursday, 1 May 2025

EBSI Open Source Release


 

The European Blockchain Services Infrastructure (EBSI) has officially released its software as open source, marking a significant milestone in its development and aligning with the European Commission’s open source agenda.

What is EBSI ?

EBSI is a distributed network of blockchain nodes across Europe, designed to support cross-border digital public services. Its goal is to enhance trust, transparency, and efficiency in transactions between citizens, businesses, and public administrations.

Key Use Cases

Key use cases include Verifiable Credentials, Digital Identity, Document Traceability, and Trusted Data Exchange.

The release is governed by the European Public Licence (EUPL), a legally interoperable open source license developed by the European Commission. Initially created for use within EU institutions and Member States, the EUPL has gained wide recognition from both the Open Source Initiative and the Free Software Foundation.

As part of the open-source initiative, EBSI has released 11 repositories that include:

  • A multi-node Ethereum-based network;
  • All EBSI Smart Contracts;
  • APIs for interacting with the Smart Contracts;
  • A network monitoring stack.

The aim of this release is to empower public institutions, businesses, and developers to contribute to and benefit from EBSI-like infrastructure. It enables rapid innovation and fosters a collaborative, transparent environment to support Web3 solutions.

Repository link: https://code.europa.eu/ebsi/public

Follow below for more information

https://ec.europa.eu/digital-building-blocks/sites/display/EBSI/EBSI+releases+code+as+open+source