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A dedicated environment that enables mass, compliant tokenization initiatives will future proof this trend. 👏
After all, tokenizing real-world assets is taking the world by storm… right? 🤔
Outlier says $10 trillion by 2030, while Boston Consulting says $16 trillion – RWAs are here to stay and growing like a weed. 🌱
While these numbers are HUGE, they’re only possible thanks to big banks and firms. 🏛️
This adoption is great, but what does it mean for tokenization on the ground? As the front page for RWAs, we’re interested in the whole story. 👀
How do we know where tokenization works best without mass (again, compliant!) experimentation by nimble, incentivized teams? 🔍
Enter Plume, the first dedicated, scalable L2 solution focused on the modular deployment of tokenized RWA assets.
They’re putting a face on the long tail of tokenization, giving teams the environment they need to bring tokenization to the masses.
But… why do most projects need an environment like this to get started? 👣
Traditional financial (TradFi) products have complicated compliance standards – It can feel like running a marathon. 🏃
Decentralized financial (DeFi) products have complicated technical components – it can feel like solving a Rubix cube. 🧩
That means tokenization is like running a marathon while solving Rubix cubes. 😬
Plume recognizes the unique challenges of building at the intersection of cutting-edge decentralized technologies and compliant, traditional financial systems. 👀
Their modular blockchain environment makes it simple for any team to compliantly deploy tokenized solutions and infrastructure, freeing up focus and passion to build the future of tokenized global finance. 🚀
Let’s find out how they’re making it happen! 👇
We start with the basics. 🧱
At its core, tokenization involves converting the rights or ownership of a tangible or intangible asset (such as a government bond, trading card, or mineral) into digital tokens on a blockchain.
We won’t cover the entire scope or rationale of tokenization here – check out the RWA World annual report for that, where we go into serious detail across all RWA asset categories.
It sounds easy enough – take real-world things, make a token representing them, and you’ve fixed global finance! 💥
All we need is to make sure that:
🤖 Nothing goes technically wrong and breaks the entire immutable system
📜 We comply with the 200,000+ pages of Federal regulations (and that’s just the U.S.)
Okay,… not so easy after all. 😅
Big banks have teams of hundreds to get the job done—your average buidl’r… not so much.
Plume fixes this.
Regulatory compliance remains the challenge for digital assets, especially for those governed by the U.S. Security and Exchange Commission (SEC). 🦅
Just look at the LBRY case, which saw the full weight of SEC enforcement crush the company.
Teams need compliance. Looking over your shoulder every 15 minutes is bad for your neck and back. ⚕️
Plume addresses compliance by providing support through their network of service providers covering tokenization in the US and beyond, helping you choose the right legal setup and avoid future roadblocks. ⚖️
While it’s still early, Plume is cooking up some powerful partnerships to facilitate fiat onboarding and offramping. 🍽️
The following list isn’t an endorsement per se, but it’s taken straight from the Plume docs for your viewing pleasure:
Getting your money on and off the blockchain remains a serious pain point for most users. 🩹
By addressing this challenge before mainnet even launches, Plume is laying the foundation to support tomorrow's next 1000 RWA and tokenization projects. 🚀
Most DeFi users are familiar with liquidity pools. 🤽
Only a few are familiar with blockchain-based Alternative Trading Systems (ATS). 💻
These systems are regulatory-compliant environments that facilitate primary and secondary market trading of tokenized assets. 💱
Unlike formal exchanges, which have much more significant regulatory burdens, ATS provides the right blend of compliance and flexibility for asset tokenization via blockchain. ️
Is that another high-fidelity, curated list we can pull directly from Plume’s docs? Why yes – these guys are on it! 👏
tZERO: A leader in blockchain innovation for capital markets, tZERO offers an ATS that provides a regulated venue for private companies and other issuers to trade digital securities.
Openfinance: Specializes in providing trading and settlement services for tokenized securities. Openfinance ATS offers a compliant platform for secondary market trading, increasing liquidity and accessibility for alternative assets.
Archax: Aims to bridge the gap between the blockchain-based digital asset world and traditional finance. Archax ATS is designed for institutional investors, providing a regulated, secure, and efficient environment for trading digital securities.
Sharepost: Known for facilitating secondary transactions in pre-IPO companies, Sharepost has expanded into the blockchain space, offering an ATS that includes trading of tokenized securities.☯
Remember how compliance is the biggest issue facing tokenization today? There’s a good reason for that. 🧐
A company found in violation of SEC regulations is considered liable for the infraction – managing which customers access what assets are up to the company! 🎲
To make sure RWA projects and tokenizers are on the right side of the law, Plume leverages cutting-edge developments like:
Plume is streamlining the deployment and adoption of RWAs by blending these technologies into a secure, transparent, regulatory-compliant platform. 🌀
Plume supports a variety of token standards, the most notable being the recently approved ERC-3643. This standard is purpose-built to facilitate the compliant issuance, transfer, and management of tokens representing ownership or interests in real-world assets.
For context, ERC-3643 is shaping up to be as big as ERC-721, which brought us NFTs – it’s a big deal. 💅
It introduces some powerful new features, such as:
Compliance by Design: By incorporating compliance mechanisms directly into the token's smart contract, ERC-3643 enables automated enforcement of regulatory requirements, including restricting transfers based on investor accreditation, geographical location, and other regulatory criteria.
Transfer Management: The transfer manager module controls and validates token transfers to ensure they comply with predefined rules, enforcing restrictions such as lock-up periods, trading caps, and eligibility criteria for token holders.
Identity and Accreditation Verification: Mechanisms for verifying the identity and accreditation status of investors that are crucial for private placements and other securities offerings where regulatory frameworks require participants to meet specific criteria.
Modularity: The ERC-3643 standard is designed to be modular, allowing for the addition of custom compliance and governance features as required by the token issuer or regulatory changes. This flexibility ensures that security tokens adapt to evolving legal and market conditions.
Plume is one of the first blockchains to support ERC-3643 out of the box fully. That’s significant – if we’re going to scale RWA adoption, we need to scale RWA deployment. Supporting modular, compliance-ready standards is the way to go. 🔌
Tokenization touches countless industries and is intrinsically complicated. Blending TradFi and DeFi naturally takes time and nuance. ⏱️
Plume empowers teams and communities to soar above these complications on the wings of a turnkey, compliant blockchain ecosystem purpose-built for RWA tokenization. 🔑
Mass adoption of tokenization will still take hard work, a bit of patience, and a lot of dedication. 💪
But Plume lets builders focus on what they do best without juggling jurisdictional compliance and evolving regulations. 🤹
It’s an exciting time for RWA tokenization. 🎉
We’re excited to see how Plume makes it even more exciting in the coming months and years! 🥳
…
Want to learn more about how Plume is kicking in the door to mass tokenization? 🚪
Check out their Twitter/X and documentation for all the updates and details. 💥
And make sure to subscribe to the RWA World Newsletter for insights and updates like this BEFORE they hit the mainstream. 😎
