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Blockchain protocols that are tokenizing real world assets
Tokenization is the creation of Blockchain Tokens that represent real-world assets like art, casks of premium Whisky, classic cars, copyright licenses, equities, gold, real estate, etc.
1. What is Tokenization?
Tokenization is the creation of Blockchain Tokens that represent real-world assets like art, casks of premium Whisky, classic cars, copyright licenses, debt instruments, equities, gold, real estate, etc.
Each token represents a fraction of ownership in the underlying asset, enabling investors to buy, sell, or trade these tokens on digital asset marketplaces.
Tokenization essentially bridges the gap between traditional finance and the digital world, leveraging the benefits of blockchain technology. Tokenization is a multi-trillion-dollar opportunity.
2. Tokenization Protocols
Here’s a quick overview of Blockchain protocols that are tokenizing real-world assets:
Ondo Finance: US Money Market, Government Bonds, and Corporate Bonds
RealToken: US real-estate assets
Matrixdock: Short-term Treasury Bill
Maple Finance: institutional capital marketplace
Tangible: rebasing stablecoin backed by yield-producing real estate
Whisky Fractions: casks of premium Whisky
Meld: gold, silver, platinum, and palladium
Toucan Protocol: carbon credits
2.1 Ondo Finance
Ondo Finance operates USDY, a tokenized note secured by short-term US Treasuries and bank demand deposits. It currently operates 4 funds:
US Money Market Fund
Short-Term US Government Bond Fund
Short-Term Investment Grade Bond Fund
High Yield Corporate Bond Fund
Ondo Finance leverages Ethereum and Polygon.
RealToken enables ownership of US real estate properties through digital tokens on Ethereum and Gnosis Chain.
For each real-estate offering, RealToken creates a Delaware Series LLC or Inc. which owns a single asset (a property) with its own token and unique address. This ensures that the properties are legally independent and are not cross-collateralized.
RealToken leverages the Gnosis Chain.
Matrixdock’s primary product is STBT, a tokenized version of short-term US Treasury securities with 6-month maturities and reverse repurchase agreements.
STBT is an ERC-1400 token for institutional and accredited investors. STBT rebases interest every business day.
Matrixdock leverages Ethereum.
2.4 Maple Finance
Maple enables experts to handle quick-paced loan operations, channeling funds to companies for expansion and daily tasks.
Maple matches both big institutions and qualified individual investors with lending options that align with their needs for liquidity, risk, and profit.
Maple Finance leverages Ethereum.
Tangible operates RealUSD, which is backed by tokenized real estate.
The rent collected from the rental properties is distributed daily as a native rebase. The yield increases with the value of real estate held.
Real USD is pegged to the US dollar and 50% of the backing is held in DAI.
If the collateralization ratio drops beneath 100%, then 50% of the rental yield is automatically redirected to the treasury. This recollateralizes the asset and ensures that Real USD is fully backed.
Tangible leverages Polygon, Ethereum, and Optimism.
2.6 Whisky Fractions
Whisky Fractions is a digital marketplace for buying & selling fractions of Whisky in Casks.
Whisky, unlike wine, matures exclusively in a cask. Cask refers to all types of oak vessels that are used in the storage and maturation of whisky. As per UK laws, all casks containing Scotch Whisky must be made of oak wood.
Whisky in Casks is called "liquid gold" because of its economic potential, and its tangible, appreciating nature.
Whisky Fractions leverages the Hybrid Finance Blockchain (HYFI).
Meld Tokens are redeemable for gold, silver, platinum or palladium.
Each Meld Token is backed by 1 gram of gold, silver, platinum, or palladium. The precious metals are stored in secure vaults.
Meld leverages Algorand.
2.8 Toucan Protocol
Toucan Protocol enables the tokenization of Carbon Credits.
Carbon Bridges enable the tokenization of carbon credits held in carbon registries. These credits are locked so that they cannot be double-counted.
Carbon Pools add liquidity by holding tokenized carbon credits with similar attributes. The pools create tradable reference tokens.
Toucan enables quick & transparent retirement of carbon credits.
Toucan Protocol leverages Polygon, and Celo.