The TokenFi RWA Tokenization Module is created to enable the tokenization of Real World Assets (RWA) that are not classified as securities. This feature serves as a quick and efficient means for users to tokenize real-world assets through the TokenFi platform.
The TokenFi RWA Tokenization Module will mainly allow tokenizing assets that are not securities.
While there is a limit to how much we can reveal about how we intend to go about tokenizing RWAs for now, at least until we go live with our RWA Tokenization Module in 2024, we can give some insight into some of the tech TokenFi will use. Specifically, we are in talks with Chainlink and other key partners whose tech will power our RWA Tokenization Module.
Chainlink is the world leader when it comes to RWA tech and infrastructure with over $9 trillion in total transaction value enabled!
With Chainlink specifically, TokenFi will use the Chainlink Proof of Reserves (PoR) and the Chainlink Cross-Chain Interoperability Protocol (CCIP) to power our RWA Tokenization Module.
Chainlink Proof of Reserves (PoR) allows smart contracts to validate the true collateralization of any off-chain or cross-chain reserves, a key factor in ensuring an accurate representation of tokenized assets on the blockchain.
Chainlink PoR uses a decentralized network of oracles to audit off-chain collateral/reserves in real-time, thereby preventing tampering through fractional reserve practices or other potential attempts at manipulation. Chainlink PoR also leverages a network of trusted on-chain auditors to monitor the collateral/reserves of a tokenized asset in real time, thereby giving users assurances of an asset’s collateralization at all times.
Besides helping to ensure the validity and collateralization of a tokenized asset, Chainlink PoR can also help securely mint, redeem, and burn wrapped assets or halt these automatically in response to the real-time status of the collateral used for a tokenized asset.
TokenFi’s parent entity Floki is partnered with Chainlink and has a direct line of contact with them, and we are already in talks to use their solutions as one of the main technical frameworks for the TokenFi RWA Tokenization Module. Chainlink will help facilitate the implementation of their tech within TokenFi as soon as we are ready to go live with the RWA Tokenization Module: this will be in 2024 according to our roadmap.
Chainlink’s industry-standard oracle networks power the Chainlink Cross-Chain Interoperability Protocol (CCIP), which would allow users to move tokenized assets across different supported chains seamlessly and instantly without having to rely on a bridge, essentially removing the security risks that the standard bridge solution would have posed.
This means you could instantly tokenize a Real World Asset (RWA) on the Ethereum chain and move your asset to the Polygon, Base, or BNB chain. You can also move your asset back to the Ethereum chain should you desire to. This process will be done seamlessly by Chainlink CCIP without the user worrying about the underlying mechanisms being used.
We are in an increasingly cross-chain world, where we have over a thousand different blockchains. We are implementing CCIP because we want users who tokenize assets through TokenFi to have an assurance that they can move their tokenized assets from the chain it was initially tokenized on to several other chains with superior qualities (speed, scalability, cost, etc) whenever they desire.
As long as Chainlink CCIP supports a chain, you can move your tokenized asset to that chain seamlessly and instantly. More importantly, based on our discussions with the Chainlink team, CCIP will support more chains in the future, so you would likely still be covered should a new chain come up in the future that has superior qualities and traction that you would eventually want your tokenized assets to be moved to.
In addition to Chainlink, we are also in talks with other partners whose tech we intend to implement to ensure TokenFi users have as much flexibility as possible when tokenizing Real World Assets (RWAs) on our platform.
We would also likely implement ERC-3643, the standard for permissioned tokens, which has successfully been used to tokenize over $28 billion in assets.
The ERC-3643 standard uses a built-in decentralized identity framework, “ONCHAINID”, to ensure that only users that meet certain pre-set conditions can hold your tokenized assets, thereby giving you more control over your tokenized assets than you would have on an average token, even if your tokenized assets are on a permissionless blockchain.
TokenFi RWA Tokenization Module uses TOKEN as its main utility token and will be live on mainnet in 2024.
