Today SWIFT announced the results of its blockchain interoperability trial conducted with more than a dozen financial institutions including BNP Paribas, Citi, and the DTCC. It used a combination of SWIFT messaging and Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to integrate legacy systems with a public Ethereum testnet and Avalanche.
Tokenization promises to provide significant efficiencies which will allow some assets to be offered to investors in much smaller denominations, or fractionalization. This will expand the potential pool of investors. A recent research report on blockchain asset backed securities in China quantified these benefits. And an institutional BNY Mellon survey found that 97% see the potential of tokenization for asset management.
However, so far many of the blockchain tokenization solutions are creating new silos. And integrating dozens of solutions becomes a costly task, undermining the potential cost savings.
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