Overview

What Is Tokenization?

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

Let's take traditional financial infrastructure as an example. It 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

• 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.

• Instant Settlements

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

• Automated Processes

Smart contracts can automate manual and complicated procedures. With tokenization, these contracts remove middlemen, simplify financial workflows, and ensure quick settlements while following regulations. They also lower transaction costs.

Use Cases

Future-proof your financial strategies with the Blockdaemon Tokenization API:

• Token Transfers: Compliance checks when transferring tokenized assets, such as ERC-1404 and ERC-3643 tokens.
• Mitigate Risks: Simulate various operational scenarios to identify potential bottlenecks.
• Perform Integration Testing: Examine how tokenization integrates with existing financial systems and compliance frameworks.

Supported Protocols & Networks

The Blockdaemon Tokenization API supports the following protocols and networks: