The Real-World Asset (RWA) tokenization market could reach $16 trillion by 2030,
representing 10% of the global GDP.
With the current total value of tokenized RWAs standing at over $3 billion, well below its all-time high, the substantial projected growth relative to the value of tokenizable assets highlights massive untapped market potential.
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Demystifying ERC-3643 is a deep dive into the ERC-3643 token standard for tokenizing real-world assets (RWAs) such as securities, commodities, real estate, etc. in a compliant and regulated manner on Ethereum and EVM-compatible networks.
This comprehensive report, produced in collaboration with members of the ERC-3643 Association, features insights and case studies from industry experts, clarifying the mechanics, challenges, and opportunities of the ERC-3643 standard.
Demystifying ERC-3643
The ERC-3643 standard aims to address challenges associated with regulatory compliance in the tokenization of real-world assets, offering a solution that integrates compliance into the tokenization process itself.
The report provides a comprehensive overview of the ERC-3643 standard, highlighting its significance in the tokenization of real-world assets, the benefits it offers in terms of compliance, liquidity, and efficiency, and its potential to transform the way assets are managed and traded on blockchain networks.
Key takeaways:
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Standardized Compliance and Identity Verification: ERC-3643 emphasizes compliance through embedded transfer rules in tokens and rigorous identity verification using ERC-734, ERC-735 standards, and ONCHAINID. This is designed to enable its use for regulated securities applications, supporting a wide range of RWA tokenization including securities, commodities, e-money, and loyalty programs.
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Interoperability and Upgradability: The standard ensures compatibility with the Ethereum Virtual Machine (EVM) and the ERC-20 standards, featuring upgradable smart contracts to accommodate future regulatory requirements and technological advancements.
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Enhanced Liquidity and Cost Reduction: ERC-3643 aims to facilitate increased asset liquidity and reduce transaction fees through automated on-chain settlement, making the management and transfer of tokenized assets more efficient and cost-effective.
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Control and Customization: The standard allows issuers and agents to retain control over tokens and offers the high level of customization regulators require for issuing and trading securities in certain jurisdictions, ensuring regulatory compliance while enabling innovation.
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Technical Breakdown and Implementation: A detailed technical breakdown of ERC-3643's core features is provided, including its implementation through the T-REX Protocol, which is a comprehensive suite of Solidity smart contracts designed to facilitate the issuance, management, and transfer of security tokens in compliance with regulations.
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Real-World Applications: The report explores selected case studies such as the ABN AMRO Green Bond, Diamond Standard Fund Token, and BlocHome Real Estate Tokenization, showcasing the practical application of the ERC-3643 standard in various sectors, including finance, commodities, and real estate.
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Ongoing Developments and Adoption: It discusses the growth of the ERC-3643 standard, its adoption across different industries, and ongoing developments to expand its utility and address the evolving needs of the tokenization market.
ACCESS THE ERC-3643 DEEP DIVE REPORT
Learn how ERC-3643 contributes to regulatory-compliant asset tokenization.
This report demystifies the technical facets and showcases its potential strategic advantages to the financial services industry. Companies that have contributed their expertise and insights include Tokeny, Dfns, Hacken, Mayer Brown, T-RIZE Group, Aztec Group, Oasis Pro and RWA World.
Discover the Framework: Learn the structure and functionality of ERC-3643.
Strategic Adoption: Explore how to implement ERC-3643 within your asset tokenization strategies.
Future-Proof Your Operations: Understand the implications of adopting the ERC-3643 and how it can help with compliance and market competitiveness.