BNB Chain has unveiled a new real-world asset tokenization service that provides individuals and businesses with a no-code solution to tokenize real-world assets in “minutes.”
According to the announcement, the new service streamlines the process of asset tokenization through in-built compliance tools and clear guidance through each step of the tokenization process — including asset securitization and onchain minting of tokens.
Outsourcing the tokenization process to the BNB Chain’s tokenization solution significantly reduces the cost, time, and labor required to tokenize assets — lowering the barrier-to-entry for small businesses seeking to leverage real-world asset tokenization.
A simplified graphic illustrating the asset tokenization process. Source: BNB Chain
Tokenizing physical assets provides several benefits to businesses, including the fractional ownership of assets like art, securities, collectibles, and carbon credits. Tokenization can also create cost efficiencies in customer loyalty and rewards programs to encourage consumer engagement.
Related: Singapore advances asset tokenization with new MAS frameworks
Real-world asset tokenization: a major use case for crypto
BNB Chain’s new tokenization solution is one of the many initiatives focused on bringing real-world assets onchain — a market sector that could grow to encompass $600 billion in assets under management by 2030.
Nowhere else is the growing trend in real-world asset tokenization more apparent than in the stablecoin market. On Oct. 29, 2024, the United States Treasury Department highlighted that stablecoin issuers are boosting demand for US debt.
More specifically, stablecoin firms are purchasing US Treasury bills and other short-term cash equivalents to back their digital fiat tokens — shoring up demand for the US dollar in the face of de-dollarization efforts by sovereign holders of US debt.
In early November 2024, the Monetary Authority of Singapore (MAS), the SWIFT interbank messaging system, oracle network Chainlink, and banking giant UBS announced the successful conclusion of a pilot program to test tokenized fund settlement between entities.
The pilot program introduced transactions that could be settled in fiat currencies or non-blockchain funds, opening the door for traditional financial institutions to take advantage of tokenized assets without needing to hold any cryptocurrencies.
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