Xend Asset Chain: Powering an $11 Trillion Tokenized Real-World Asset Market
Imagine a $11 trillion market where real-world assets like real estate are just a digital token away. Xend Asset Chain aims to make these assets more liquid, transparent, and accessible.
The financial landscape is undergoing a seismic shift, driven by the convergence of blockchain technology and traditional asset markets. At the forefront of this shift is Xend Asset Chain, poised to unlock a staggering $11 trillion real-world asset (RWA) tokenization market, in 2030.
This deep dive explores how Xend Asset Chain is revolutionizing asset tokenization, its strategic framework, use cases, and the immense opportunities it presents.
The Emergence of Real-World Asset Tokenization
Real-world asset Tokenization refers to converting tangible physical assets — such as real estate, commodities, art, and intellectual property — into digital tokens on a blockchain. These tokens represent ownership rights and are secured on immutable ledgers, ensuring transparency, security, and accessibility.
Tokenization democratizes access to high-value assets, increases liquidity, and transforms how these assets are traded, managed, and owned. Let me give you an example, before the fall of FTX, we had the rare privilege of trading tokenized US stocks without being in the US. FTX tokenized US stocks and made them available for trading on their digital asset exchange.
The role of tokenization in increasing access to high-value assets cannot be overstated. Written here in 2020;
All stocks could become tokenized someday and that innovation is welcome if anyone can show how this can be done efficiently.
— Jay Clayton | Former US SEC Chairman
FTX did this in 2020 and got licensed to operate.
Fundamentally, RWA projects live at the intersection between the real world and blockchains, and between issuers (innovators) and investors. Whether they can act as an effective intermediary at these intersections will be pivotal to their success.
While there will inevitably be reliance on third parties, such as oracles, custodians, credit assessors, and more, how these are effectively utilized and managed will remain crucial for their continued operations.
This is where the Xend Asset Chain comes in.
Market Landscape and Projections
As of 2023, the market for tokenized RWAs was approximately $300 billion. However, forecasts predict a monumental surge to $11 trillion by 2030. This exponential growth is fueled by the increasing adoption of blockchain technology particularly DeFi within traditional finance sectors, making tokenized assets an integral component of the global financial ecosystem.
According to CoinGecko’s RWA Report 2024, while fiat-backed stablecoins are the origin of RWA tokens, the 2022 bear market led to a more diverse set of tokenized RWAs. Initially focused on debt/credit with DeFi, other RWAs like real estate, art, and collectibles are now capturing investors’ interest.
In 2022, Aave, Compound, Umami, Yearn Finance, and Maker DAO dominated the real-world asset tokenization market through DeFi. From less than $1 billion in 2020, DeFi is valued at about $79 billion today with a peak value of $178 billion in 2022.
“I believe the next generation for markets, the next generation for securities, will be tokenization of securities.”
— Larry Fink | CEO, BlackRock
The focus of RWA tokenization is no longer debt/credit but a large bucket of various assets including art and collectibles in the form of NFTs, real estate, and intellectual property.
Today, the NFT market is valued at $27.7 billion, and over $100 billion is traded in NFTs. Companies like Sabai Ecoverse, Etherland, Decentraland, and Clusttr are tokenizing real estate.
These companies need one thing, Real-world Asset Tokenization Infrastructure — that is what Xend Asset Chain is building.
Xend Finance: Leading the Charge in RWA Tokenization
Xend Asset Chain is pioneering the RWA tokenization space by integrating blockchain technology with real-world assets. It offers a seamless and compliant environment for asset tokenization, management, and trading.
By enabling assets to move seamlessly on-chain, Xend Asset Chain empowers compliance, liquidity, and utility, fostering a robust global ecosystem for asset tokenization.
Just like FTX provided global access to US stocks, Xend Access Chain will provide access to real-world assets, regardless of location.
The Vision Behind Xend Asset Chain
Xend Asset Chain aims to redefine asset tokenization by developing multiple token standards tailored to the legal requirements of various asset classes.
This strategic approach facilitates diverse ownership rights and yield-bearing tokens, enhancing investor participation in the RWA ecosystem.
Here are a few key features of the Xend Asset Chain:
- Speed: can process up to 5000 transactions per second.
- Transaction Finality: 1–2 seconds absolute finality (irreversible) to ensure institution-grade security and prevent network clogging.
- Consensus: Lachesis aBFT consensus algorithm developed by Fantom. Lachesis allows scaling transaction throughput while keeping instant finality without an increased risk of centralization.
- Validator node security: limitless and requires a minimum of 30,000 $RWA to run a Proof-of-stake validator node.
- Staking reward distribution: 20% goes to Xend ecosystem treasury and 80% goes to validators
- EVM compatibility: compatible with the EVM (Ethereum Virtual Machine) for developers to deploy Ethereum-type smart contracts.
- Ecosystem token: $RWA serves as the Xend Asset Chain ecosystem token.
The shift from the $XEND token to the $RWA token signifies Xend’s commitment to building a multi-product RWA ecosystem. This transition is supported by the Onchain Assets Environment (OAE) framework, ensuring compliant and efficient onboarding of assets onto the blockchain.
The Xend Asset Chain OAE Framework
The Onchain Assets Environment (OAE) is the backbone of the Xend Asset Chain, built on several strategic pillars to facilitate seamless tokenization and management of real-world assets:
- Asset Chain: Tokenizes real-world assets and records legal and factual events.
- Origin Studio: Manages and issues tokens, facilitating asset tokenization and associated rights.
- Social Hub: Connects token and asset owners with market makers, investors, authenticators, insurance providers, and compliance validators.
- Xend Connect: Integrates Asset Chain with other OAE components and external systems through data exchange oracles.
- Global Ownership Register (GOR): Tracks asset profiles and relevant transactions on the RWA blockchain.
- Xend Solutions: Provides a suite of services, including banking, exchanges, fundraising platforms, wallets, and cross-chain transaction bridges.
- IAC Cooperation Triangle: Ensures asset integrity and compliance through partnerships with insurance providers, asset authenticators, and compliance validators.
Real-World Applications and Use Cases
Xend Asset Chain will support a diverse range of real-world asset tokenization use cases, transforming industries and creating new investment opportunities:
1. Real Estate
Tokenizing real estate properties enables fractional ownership, making high-value assets accessible to a broader pool of investors. This enhances transparency and reduces transaction costs by eliminating intermediaries.
- Use Case: Investors can own fractions of commercial buildings, residential homes, or undeveloped land, facilitating easier and faster ownership transfers.
2. Financial Assets
Tokenizing stocks, bonds, and shares increase their liquidity and provides new opportunities for businesses and investors. Blockchain simplifies asset management, reducing costs and enhancing security.
- Use Case: Companies can issue tokenized shares, bonds, and mutual funds, allowing for quicker and more efficient trading on global markets.
3. Art and Collectibles
Tokenizing art pieces and collectibles democratizes the exclusive art market, enabling anyone to buy, own, and trade fractions of high-value assets.
- Use Case: Fractional ownership of famous artworks allows multiple investors to share ownership and participate in the art market’s growth.
4. Commodities
Tokenizing commodities like precious metals and agricultural products optimize trading and settlement, creating more secure and efficient markets.
- Use Case: Tokenized gold like XAUT, and PAXG can be traded on blockchain platforms, providing investors with a secure and transparent way to invest in precious metals.
5. Intellectual Property
Tokenizing intellectual property rights opens new revenue streams for creators, making property rights more accessible and tradable.
- Use Case: Creators can tokenize patents or copyrights, allowing investors to buy and trade these rights, fostering innovation and investment.
Conclusion
Real-world asset tokenization is not merely a technological trend; it is a transformative force reshaping the global economy. By bridging traditional finance and decentralized finance, Xend Asset Chain offers unparalleled opportunities for investors, businesses, and markets alike.
Join the Xend Asset Chain Testnet here.
