The ethereum community has officially approved the ethereum Improvement Proposal (EIP) ERC-3643. ethereum.org/EIPS/eip-3643″ target=”_blank” rel=”noopener nofollow”>setting as a recognized standard for compatible tokenization of real-world assets (RWA).
According to a December 15 announcement, the proposal ethereum-community-approves-erc3643-as-the-first-tokenization-standard” target=”_blank” rel=”noopener nofollow”>reached its final state, meaning that it has been formally reviewed, discussed, and agreed upon within the ethereum community. This is a similar process to the way ERC-20 and other popular standards were established in the past.
The ethereum community approves it #ERC3643 like the first #Tokenization Standard
We are proud to announce that the ERC3643 standard has reached “Final” status in its ethereum?src=hash&ref_src=twsrc%5Etfw”>#ethereum Improvement proposal (#EIP).
Read more here: https://t.co/Z4XzijY6se#RWA pic.twitter.com/DhR3XmGrVU
-ERC3643.org (@ERC3643Org) December 15, 2023
ERC-3643 is a standard for tokenization of securities, RWA, payment systems and loyalty programs. It verifies users' eligibility for a token through a self-sovereign identity (SSI) framework, providing anonymous but verifiable credentials, the association behind the proposal explained.
The approved standard, which was ethereum-magicians.org/t/eip-3643-proposition-of-the-t-rex-token-standard-for-securities/6844″ target=”_blank” rel=”noopener nofollow”>proposed In 2021, it is based on ERC-20 and incorporates two different permission layers to improve security and compliance.
The first layer focuses on the identity and eligibility of the transaction recipient, using ERC 734/735 standards to verify whether the necessary claims are present in the identity and are authenticated by trusted claim issuers. The second layer implements global restrictions on the token itself, such as limits on daily token volume and the maximum number of token holders, providing controlled and regulated token circulation.
Asset tokenization involves converting the value of a physical or digital asset into a digital token on a blockchain or distributed ledger. Potential benefits of asset tokenization include increased liquidity, faster settlements, transparency, and accessibility to multiple markets. Real-world applications include enabling fractional trading of real estate, art, financial assets, and intellectual property.
Roland Berger Management Consulting Firm Dear All that asset tokenization will grow to a market worth $10 trillion by 2030, a significant increase from the current value of around $300 billion.
Asset tokenization is being considered by a wide range of traditional and crypto-native companies as one of the major trends in finance. Notable companies exploring the technology include JPMorgan, Goldman Sachs and Société Générale. VanEck Research Data Shows Total RWA Market Cap reached $342 billion in September despite crypto industry headwinds.
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