Moving tokenized real-world assets onto Quilibrium

Real-world assets (RWAs) are anticipated to play a significant role in the future of finance and digital asset management, potentially reshaping how people interact with and manage their wealth.

According to a report by Boston Consulting Group (BCG), the tokenization of RWAs is expected to be "the third revolution in asset management." The report also conservatively estimates that the total value of tokenized illiquid assets could reach $16.1 trillion by the end of the decade, representing a substantial portion of global wealth.

Real-World Assets Are Represented as Tokens On-Chain

These assets can range from tangible items like real estate, fine art, and precious metals to intangible assets such as intellectual property.

Institutions are increasingly moving toward the tokenization of real-world assets to bridge the gap between traditional finance and decentralized finance (DeFi).

Asset tokenization has the potential to disrupt multiple industries and bring trillions of dollars of real-world value to on-chain networks. Some investors are showing interest in allocating 7% to 9% of their portfolios to tokenized assets.

Tokenized assets benefit from permissionless liquidity, open access, and reduced transactional friction compared to traditional assets. Tokenization can also lower barriers to certain investment opportunities and bring more liquidity to traditionally illiquid asset classes.

Tokenization Does Not Eliminate the Need for Secure Storage and Privacy of Sensitive Data

There are technological risks associated with tokenizing RWAs. For instance, hackers can exploit vulnerabilities in smart contracts, leading to the loss of tokens or other assets. Furthermore, the loss or compromise of private keys—essential for accessing and transferring tokens—can result in the permanent loss or theft of assets.

Quilibrium: Everything for RWAs and Sensitive Data Hosting Built Into a Seamless, Secure Network

Maintaining and managing tokens requires institutions to stay up-to-date with compliance standards and ensure the secure custody of on-chain assets.

Quilibrium’s fully decentralized and private network, with zero-trust, MPC-based key management, offers a low-maintenance solution for on-chain tokenized assets. It is purpose-built to ensure:

Crucial Compliance With Regulations

Businesses need to avoid penalties and fines.

RWA crypto projects on other networks could choose to use Quilibrium for storage and key management, benefiting from its compliance and security enhancements.

This is another example of a real-world use case Quilibrium’s network was built to accommodate, potentially driving growth and adoption of the network.

This also exemplifies how Quilibrium Inc.’s SaaS and management services could be used by institutions and organizations seeking bespoke systems to host assets on the network.