Australian SEC Is Focusing On Tokenized Assets – What Does It Mean?

Australian SEC is focusing on tokenized assets, as the experimental program by Zerocap to demonstrate Synfini’s support for tokenized assets was deemed a success on Tuesday, August 16, 2022.

Australian SEC Is Focusing On Tokenized Assets

In a blockchain tokenization trial, the Australian Securities Exchange (ASX) partnered up with Zerocap, according to some sources. The point of this test was to determine Synfini’s capacity to support tokenized assets while the private wealth management company Zerocap acts as a custodian.

Synfini is ASX’s distributed ledger technology (DLX) as a service, which became live in November 2021 and offers the platform connection services, software, and infrastructure that clients may want to develop a DLT application.

The purpose of this trial was to show that ASX can provide a tokenization platform for both digital assets and securities. However, while talking about digital assets, cryptocurrencies are not the main subject.

According to Ryan McCall, CEO of Zerocap, the focus is not on bitcoin (BTC), but rather on anything that has a lengthy transaction cycle and needs liquidity to settle. He clarifies that anything can be tokenized, including bonds, properties, and carbon credits.

Businesses can deploy their own blockchain systems with the help of the Synfini service. It supplies the DAML smart contract language, the Clearing House Electronic Subregister System (CHESS), and the technology that enables VMware Blockchain.

In order to create a trading, clearing, and settlement app, Synfini integrated Zerocap’s custody business, which was recently involved in the pilot of ANZ’s stablecoin. Investors were shown this to showcase the potential of the platform.

Adoption of Tokenization

ASX has made significant progress in the cryptocurrency industry, which has garnered media attention. It has continually reached for the stars, from the creation of CHESS and Synfini to the introduction of Australia’s first exchange-traded fund (ETF) centered on the metaverse by Betashares. It is hardly the first company to diversify into tokenization, though.

Tokenization is a component of the developing blockchain technology ecosystem that more and more institutions and industries are adopting, as evidenced by the emergence of tokenized contracts in sports, the adoption of tokenization by independent artists, the insurance industry’s exploration of tokenization, the launch of real estate tokenization, and a proposal in Russia to amend the law on digital assets to include tokenization platforms.

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