Introducing Hedera Asset Tokenization Studio
Hedera Team
Posted on October 17, 2024
At an accelerating pace, institutions, developers, and regulatory bodies are exploring the benefits of asset tokenization and the central role it will play in the emerging digital economy. According to a recent EY Parthenon survey, 50% of institutional investors already have an interest in investing in tokenized assets, while 44% of asset managers are preparing to tokenize their own in the coming years—a clear indication that this trend is set to redefine asset management.
When taking into account both institutional and High Net Worth (HNW) individuals, 77% stated that they have already invested in, plan to invest in, or want to learn more about tokenized assets, citing lower transaction costs, enhanced liquidity, improved performance, and increased transparency enabled by blockchain and distributed ledger technologies as key considerations; stakeholders at all levels are rapidly realizing the untapped potential of on-chain assets.
To accelerate this global trend towards tokenized assets and the benefits they stand to bring, we are excited to introduce the launch of the Hedera Asset Tokenization Studio: the open-source, end-to-end toolkit for the configuration, issuance, and management of tokenized bonds and equities on the Hedera network.
Led by Hedera ecosystem partners—including The HBAR Foundation, Hashgraph, RedSwan CRE, and ioBuilders—this joint initiative offers financial institutions, enterprise issuers, and asset tokenization platforms with the testing and development tools they need to efficiently explore the benefits of bringing assets on-chain.
Ed Nwokedi, CEO and Founder of RedSwan CRE - the tokenized commercial real estate firm with plans to double their already sizeable portfolio of $5B in tokenized assets over the coming months - commented:
“The Asset Tokenization Studio is the result of months of development, fine-tuning, and critical examination of existing hindrances to commercial tokenized real-world asset adoption, such as the limitations with ERC-1400. Each aspect of this toolkit has been built with the modern user in mind, providing a seamless point of entry into the tokenized market, with forward compliance at its core.”
Dr. Sabrina Tachjian, Head of Fintech and Payments at the HBAR Foundation, added:
“By lowering technical barriers to the tokenization of bonds and equities, along with the recording of their underlying data on ledger, the Asset Tokenization Studio will contribute to the growth of Hedera’s RWA ecosystem and facilitate the on-chain migration of capital markets with a focus on compliance.”
Tokenization enables both end users and institutions to capture previously unrealized value within traditional markets, but it does not come without introducing critical considerations related to regulatory compliance, Know-Your-Customer (KYC) & Anti-Money Laundering (AML) requirements, and logistical factors associated with managing essential asset details off-chain. Technology moves quickly; regulatory requirements are unique, still emerging, and demands careful examination against the backdrop of a global economy lacking unified standards surrounding digital assets.
Asset Tokenization Studio leverages Hedera’s unique network features to address compliance, security and regulatory requirements needed by users. With native KYC/AML account flags, high customizability, and built-in support for U.S. SEC regulations (D and S), the studio provides users with the programmability and flexibility they need to comply with their specific regulatory needs while ensuring that all asset details are securely managed entirely on-chain.
Carlos Matilla, CEO of ioBuilders - our long-time development partner and provider of bespoke blockchain solutions for enterprises - stresses the broad applicability of the studio enabled in part due to its regulatory framework:
“The Asset Tokenization Studio accelerates the adoption of DLT by providing open-source tools that standardize the management of digital assets within a regulated framework. This innovation covers the entire lifecycle and servicing needs of tokenized instruments, making it a valuable resource for asset managers, issuers, broker-dealers, transfer agents, custodians, CSDs, investors, and regulators alike.”
The world is in need of an intuitive, compliant solution that will enable them to unlock the true value of tokenized assets. For prospective institutions and enterprises exploring the topic, questions regarding what the benefits of tokenization are can be easily addressed. Whether its lower operational costs for enterprises, faster settlement times for customers, or increased liquidity for traditionally illiquid assets, the answers are simple and easy to digest.
To ask “How can we reap the benefits of tokenization in a way that is intuitive, cheap, and compliant?” is something else entirely. A question that is central to the ongoing tokenization of the economy and one that did not have an easy answer… until now.
Start unlocking the future of tokenized assets with Hedera Asset Tokenization Studio today.
Hello Future.
Posted on October 17, 2024
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