Overview

The Blockdaemon Tokenization API supports the management of tokens, such as ERC-1404 and ERC-3643 tokens.

What Is Tokenization?

Tokenization is the process of encoding an asset's value or ownership rights into a digital token on a blockchain. Tokenization involves two main types: stablecoins (e.g., USDC) and security tokens (e.g., ERC-1404 and ERC-3643).

Let's take an example from traditional financial infrastructure, which faces notable constraints, relying on intermediaries with isolated proprietary infrastructures and jurisdiction considerations. Tokenization fixes these issues by turning value or ownership rights into digital tokens on a blockchain. This makes buying, selling, or trading things much easier in a digital world.

Key Benefits of Tokenization

1. ERC-1404 and ERC-3643 Support

ERC-1404 and ERC-3643 token standards are Ethereum token standards optimized for institutional use. The Blockdaemon Tokenization API supports both of these standards.

2. Instant Settlements

Tokenization ensures instant, 24/7 settlements. It transforms the investment markets and makes asset ownership more accessible.

3. Automated Processes

Manual and complicated procedures can be automated via smart contracts. With tokenization, these contracts remove middlemen, simplify financial workflows, and ensure quick settlements while following regulations. It also leads to lower transaction costs.