Innovative Tokenization Expands to Coinbase’s Base Blockchain
The financial sector is undergoing a digital transformation, and one groundbreaking trend is tokenization. Backed Finance, a Switzerland-based tokenization firm, has recently made a significant move by expanding its tokenized U.S. Treasury offering to Coinbase’s Base blockchain.
Tokenizing Real-World Assets on the Base Network
Tokenization involves converting real-world assets into digital tokens, and it has become increasingly popular. On October 6, Backed Finance launched its tokenized version of BlackRock’s short-term U.S. Treasuries ETF on Coinbase’s Base blockchain, marking a milestone for both platforms.
According to Adam Levi, co-founder of Backed, the potential for tokenized real-world assets is enormous. He asserts that “we can tokenize anything held in a bank account,” highlighting the vast opportunities that lie ahead.
Advantages of Tokenization
Tokenization offers numerous advantages, including increased transparency, security, and accessibility. By placing traditional financial instruments on a blockchain, it opens up new possibilities for investors and traders.
The Base network, which was incubated by Coinbase, is an ideal platform for these tokenized assets. It promises reduced transaction fees and enhanced scalability, making it well-suited for handling such endeavors.
The Growing Market for Tokenized Real-World Assets
While the tokenization of U.S. Treasuries is an important development, it represents just the beginning. The market for tokenized real-world assets is expected to reach a worth of $16 trillion by 2030.
This growth is fueled by the appeal of U.S. Treasuries as they offer high yields and low-risk characteristics. Tokenization enables broader access to these financial assets, eliminating traditional barriers and providing a more inclusive investment environment.
Hot Take: Tokenization Paves the Way for Financial Inclusion
The expansion of tokenization to Coinbase’s Base blockchain is a significant step forward in the world of digital finance. By converting real-world assets into digital tokens, tokenization democratizes access to financial instruments.
With increased transparency, security, and accessibility, tokenized assets hold great potential for transforming the financial sector. As the market for tokenized real-world assets continues to grow, it has the power to make investing and trading more inclusive and accessible to a broader audience.
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