Overview

Tokenization refers to creating digital tokens that represent real-world assets, rights, or ownership of assets on a blockchain. These digital tokens can represent a wide range of assets, such as real estate, stocks, commodities, art, or even intangible assets like intellectual property. These tokens can represent ownership, rights, or assets, and they offer advantages like increased liquidity, fractional ownership, and transparency.

The diagram above represents the traditional way in which capital moves, involving a series of intermediaries and entities. This approach is often criticized for its inefficiency and lack of transparency. Imagine the remarkable change that occurs when you adopt tokenization and integrate it with blockchain technology, resulting in the creation of a Blockchain-enabled Capital Flow, depicted below:

In this new flow, blockchain plays a central role, leveraging its decentralization, security, and transparency features to optimize the process. Additionally, through the utilization of tokenization, you can enjoy several benefits, such as:

• Strengthening the core of financial infrastructure.
• Simplifying and reducing costly operational processes.
• Minimizing reliance on intermediaries.
• Creating smoother and more streamlined operations.
• Facilitating ease of trading and fractional ownership.
• Promoting trust and transparency.
• Realizing cost savings.
• Enhancing interoperability.

Why Choose Institutional Vault for Tokenization?

Blockdaemon's Institutional Vault revolutionizes managing real-world assets, effectively connecting blockchain technology with traditional financial systems. As an Institutional Vault, Blockdaemon provides a wide range of tokenization features, such as:

1. Token Standards: Blockdaemon supports a variety of token standards, including ERC-1404, ERC-20, and ERC-3643.
2. Token Management: Blockdaemon excels in token management, providing the tools and features necessary for issuing tokens, monitoring token ownership, and exportable transaction history.
3. Policy Settings: Blockdaemon proficiently manages the setting and enforcement of policies that govern the use of tokens, ensuring compliance and security throughout the token lifecycle.
4. Token Transfer: Blockdaemon facilitates secure and authorized token transfers, making it easy for users to move their assets between approved parties.

A Demonstration of Institutional Vault's Tokens Support

In this section, we will guide you through a step-by-step demonstration of how on-chain policies on the smart contract come into play when transferring tokens within the Institutional Vault.

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Note:

In this scenario, we are working within a demo account. We demonstrate two token types, ERC-1404 and ERC-3643. We've also implemented on-chain policies on the smart contract to enforce transfer restrictions.

How to Add Tokens

To add the ERC-1404 and ERC-3643, follow the steps below:

1. Go to Settings.

2. Select the Assets tab.

3. Click Add ERC-20 token.

4. Fill in the token's contract address.
5. Select the image for the token.
6. Click Add Token.

7. After that, repeat the above steps for the ERC-3643 token.
8. In the Assets tab, two types of tokens that we have added will appear.

ERC-1404 Transfer Restrictions

To demo the ERC-1404 transfer restriction, follow the steps below:

1. Click Accounts.

2. Select the demo account.
3. Select the ERC-1404 token, and click the overload icon.

4. Select Transfer Funds.

5. Specify the external destination account and the amount.
6. Click Transfer.

7. A restriction window will appear, as shown below:

ERC-3643 Transfer Restrictions

To demo the ERC-3643 transfer restriction, follow the steps below:

1. Select Accounts.

2. Select the demo account.
3. Select the ERC-3643 token, and click the overload icon.

4. Select Transfer Funds.

5. Specify the external destination account and the amount.
6. Click Transfer.

7. A restriction window will appear, as shown below: