The BNB Chain has recently announced a service that simplifies the tokenization of real-world assets, creating an easily accessible, no-code solution for individuals and businesses. This service lowers the cost and required labor needed to tokenize assets and features built-in compliance tools that aid in streamlining every step of the tokenization process, thus attracting small businesses wanting to explore real-world asset tokenization.
The tokenization of physical assets presents numerous benefits for businesses. Fractional ownership of assets such as securities, collectibles, art, and carbon credits is one. Also, it introduces cost efficiencies in customer loyalty and rewards programs, enhancing customer involvement.
BNB Chain’s new tokenization service demonstrates the rising trend of bringing real-world assets onchain—anticipated to become a market sector with $600 billion in assets under management by 2030. This trend in real-world asset tokenization primarily shows in the stablecoin market, with increased demand for the US debt from stablecoin issuers.
In particular, stablecoin companies are securing their digital fiat tokens by buying US Treasury bills and other short-term cash equivalents, raising demand for the US dollar amidst efforts of de-dollarization by sovereign holders of US debt.
In November 2024, the Monetary Authority of Singapore (MAS), UBS banking giant, SWIFT interbank messaging system, and oracle network Chainlink successfully concluded a pilot program to examine tokenized fund settlements between different entities. The program introduced transactions that could be completed in fiat currencies or non-blockchain funds, giving traditional financial institutions the opportunity to leverage tokenized assets even without holding any cryptocurrencies.