Chainlink Labs’ director of capital markets highlights the potential of integrating real-world data into tokenization, suggesting it could offer superior applications compared to traditional finance.

In a report titled “Beyond Token Issuance,” Chainlink explores the opportunities for asset managers in the digitalization of financial infrastructure. The report emphasizes the importance of interoperability and leveraging real-world data to unlock the full value of tokenized assets.

Chainlink outlines several potential benefits for asset managers, including unlocking dormant capital, increasing asset availability, and creating innovative revenue models. Additionally, tokenization can facilitate unified client portfolios, differentiate service offerings, and enhance risk management through automated risk assessment.

The report underscores the evolving role of blockchains within the financial ecosystem, noting the convergence of traditional and blockchain-based assets into a unified financial system driven by digitization.

Ryan Lovell, director of capital markets at Chainlink Labs, describes tokenization as transitioning from a research and development phase to building foundational infrastructure. Lovell emphasizes the importance of making tokenized assets composable and programmable across various systems, including traditional and blockchain-based platforms.

Lovell believes that integrating real-world data into tokens and enabling interoperability across different blockchain networks and traditional systems can unlock powerful applications. These applications are expected to offer greater transparency, reduced costs, and streamlined administrative processes compared to traditional financial infrastructure.

Chainlink is actively working on initiatives to enable institutions to manage tokenized assets throughout their lifecycle and facilitate cross-chain transactions, aiming to advance the capabilities of tokenization beyond simple issuance.