Navigating the Waters of Real-World Asset Tokenization: Insights from Backed’s Latest Launch

An abstract visual of digital coins representing various assets floating above a Swiss mountainscape under a dusky ethereal sky, hinting at a futuristic scene. Each coin subtly resembles real-world items like bonds or shares. The artistic style draws from Futurism with emphasis on technology, subtle lighting setting a mood of anticipation and mystery.

Swiss entity Backed continues to make strides in the tokenization of real-world assets, recently launching its latest product, bIB01, on Base blockchain, an L2 network developed by Coinbase. The new security token closely shadows the results of a short-term US treasury bond ETF, presenting a fresh, digital engagement mechanism for traditional finance enthusiasts.

Operating under the Swiss Distributed Ledger Technology Act, Backed’s tokenized securities are referred to as bTokens. Intriguingly, these Ethereum-based ERC-20 tokens embody the value of a range of real-world assets such as corporate bond ETFs, treasury ETFs, and publically traded shares. Previously Backed issued tokens on the Ethereum base layer and Gnosis blockchain, according to on-chain data from Dune Analytics.

Just like traditional stablecoins, the bTokens replicate the worth of their corresponding real-world assets; they are comprehensively collateralized, thereby ensuring their enduring value. The launch of bIB01 signals a crucial expansion in Backed’s tokenized security offerings.

When it comes to platform choice, Backed has lavished praise on the Base blockchain. They celebrate its cost-effectiveness and developer-friendly ambiance, ideal for devising and launching innovative tokenized securities products. Giorgio Giuliani, Head of Product at Backed, confirmed that the platform continually sees intriguing new use cases for its product, thus making Base an apt choice for further exploration.

But there is a caveat. Backed’s tokenized assets remain elusive to US-based investors due to lack of registration with the Securities and Exchange Commission or any state securities regulator. Thus, they cannot be traded, sold, or delivered within the US. It’s worth noting that bTokens are available solely to licensed resellers and certified investors who have completed standard protocols such as know-your-customer and anti-money laundering checks.

Even with these limitations, Backed’s blockchain applications present an interesting confluence of traditional asset classes with the digital world. It is also reflective of the gradual acceptance of blockchain technology amongst conventional financiers. However, the limited accessibility to a broader investor base could limit the potential growth of the platform. A fine example of how regulatory oversight continues to play a role in shaping the landscape of distributed ledger technologies. As for the future, let the innovation thrive and the markets decide.

Source: Cryptonews

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