New York, NY, June 6th, 2024 – Citi, Deutsche Bank, Mastercard, Northern Trust, and Centrifuge have collaborated with the Axelar Foundation and Metrika to produce a comprehensive report on achieving interoperability for tokenized assets across various blockchain networks and legacy systems.
The report, titled “Institutional Interoperability: How Financial Institutions Navigate a Multichain World,” focuses on increasing accessibility and liquidity for tokenized assets while ensuring flexibility, privacy, transparency, and scalability. Tokenized assets refer to on-chain representations of financial assets such as real estate, currencies, and securities. A recent report by the Boston Consulting Group and ADDX predicts the value of tokenized assets to reach trillions of dollars within the next decade. The institutions involved in the report emphasize the importance of interconnected network models that incorporate multiple blockchains and traditional systems to realize this potential.
The paper features insights from financial institutions including Citi, Deutsche Bank, Mastercard, and Northern Trust, highlighting their projects in asset tokenization, implementation of multiple blockchains, and the challenges and requirements for blockchain interoperability. Web3-native innovators, including Axelar Foundation, Centrifuge, and Metrika, also contributed to the report.
This paper serves as a roadmap for financial institutions navigating the complex landscape of tokenized assets, which involve public and private blockchains, as well as regulatory and client-imposed requirements. It was authored by blockchain analyst Emily Parker, based on the framework established by the Monetary Authority of Singapore’s Project Guardian in 2023.
Contributors to the report will have the opportunity to discuss its findings at a panel event during the Point Zero Forum in Zurich from July 1-3. Readers can download the paper and request an invitation to the event by clicking here.
Georgios Vlachos, director of Axelar Foundation and co-founder of Axelar protocol, emphasizes the inherent interoperability of tokenized assets, stating that the challenge lies in facilitating potentially thousands of connections across on-chain and off-chain ledgers securely and at scale.
Anand Rengarajan, managing director, global head of sales & head of securities services APAC, Corporate Bank, Deutsche Bank, highlights the necessity of multichain asset interoperability for securities service providers as clients adopt different blockchain networks. He emphasizes the importance of addressing and servicing interoperability in a cost and risk-managed manner to enable sustainable growth.
Alvin Chia, head of digital assets innovation for Asia Pacific at Northern Trust, discusses the company’s preparation for the significant growth of tokenized assets under its custody. He emphasizes the need for active participation in the blockchain ecosystem and the connection of multiple blockchains through tailored approaches.
Bhaji Illuminati, CMO of Centrifuge, explains that asset tokenization provides advantages in terms of access, liquidity, visibility, and on-chain utility. He sees Centrifuge’s multichain architecture as a means to enable flexibility and scalability in the rapidly evolving RWA (Real World Assets) ecosystem.
Nikos Andrikogiannopoulos, Founder and CEO of Metrika, believes that effective risk management and ongoing surveillance are crucial for seamlessly integrating digital assets into existing financial systems. He emphasizes the importance of confidence, accessibility, liquidity, and innovation.
Axelar is a Web3 interoperability platform that connects all blockchains and provides scalability and security. It has been adopted by companies like Uniswap and Microsoft. Centrifuge, founded in 2017, offers technology solutions for financial products and enables asset managers to tokenize and manage funds on-chain. Metrika specializes in blockchain risk management, offering tools for assessing risks, ensuring compliance, and monitoring operations.
For more information about Axelar, visit axelar.network. To learn about the Axelar Foundation, visit axelar.foundation. To find out about Centrifuge, visit their website at centrifuge.io. For information about Metrika, visit metrika.co.
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Karla Vilhelem
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MarketWaves PR
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