- Tokenization is a major theme in the financial industry.
- Analysts believe that assets worth trillions of dollars will be tokenized.
- Blockchain networks like Chainlink and Quant will benefit if this happens.
Real World Asset (RWA) tokenization has become one of the top emerging trends in the blockchain industry. A recent study shows that the industry is growing rapidly, with Boston Consulting Group expecting that over $3.2 trillion of home equity will be tokens in the next few years.
There are several blockchain projects that are gaining traction in the tokenization industry. I wrote about AllianceBlock on Tuesday, a platform that is aiming to become the leader in the sector. It provides the infrastructure, exchange, and compliance tools that people need.
Chainlink (LINK) and Quant (QNT) are two other blockchain projects to consider in the tokenization industry. Chainlink, the biggest oracle network in the world, provides tools that bring off-chain data to the on-chain.
Quant, on the other hand, is a technology project that offers tools in the digital currency, payments, and supply chain industries.
Chainlink launched the Cross Chain Interoperability Protocol (CCIP) a few months ago. This is an important part that allows arbitrary messaging, token transfers, and programmable token transfers across multiple chains. It eliminates the need for bridges and is seen as a more secure approach.
Chainlink has already launched major partnerships as it aims to scale the tokenization journey. The biggest partnership, in my view, is the one with Swift, a network that connects thousands of banks. It handles over $6 trillion every day and is exploring using tokens to speed the process.
Quant, on the other hand, has Overledger, a framework that ensures deeper interoperability. It connects apps to multiple ledgers, solving the challenge of single-ledger dependence.
At the same time, its ability to offer seamless intercommunication both with other networks and internally is a positive thing. Quant’s overledger is mostly used by banks and other financial institutions.
Analysts believe that Chainlink and Quant have a pole position in the tokenization journey, Chainlink is more useful in the DeFi ecosystem while Quant is popular in the institutional side.
We have seen several important tokenization news recently. The London Stock Exchange (LSE) is considering launching tokenized assets. JP Morgan and ANZ Bank have recently implemented tokenized transactions, a move that ushers in billions of daily transactions.
Quant (QNT) and Chainlink’s prices will likely do well if this happens. Indeed, LINK price has already jumped by over 47% from the lowest level this year. Quant’s QNT has struggled quite a bit, with its price hovering near the lowest level in 2023.
