Data tokenization is the process of converting sensitive data such as credit card information into tokens that can be securely transferred on the blockchain without revealing the original data.

Real estate tokenization is a relatively new concept that involves the conversion of real estate assets into digital tokens that can be bought, sold, and traded on a blockchain-based platform.

JPMorgan remains committed to its roadmap for tokenizing traditional financial assets, despite regulatory uncertainty and the current market conditions in the public cryptocurrency markets. The bank has been conducting short-term loan transactions using the Onyx Digital Assets platform, a permissioned version of Ethereum, where clients can trade using tokens denoting ownership rights to U.S. Treasuries as well as using blockchain bank accounts, known as JPM Coin. Among the clients using the Onyx-based repo service are Goldman Sachs, BNP Paribas, and DBS Bank. The focus would next move to tokenizing assets that are traditionally hard to finance, like money market funds, and using them for collateral purposes.

Christine Moy, head of Digital Assets at Apollo Global Management, said that tokenization "changes how value is transferred" and is only possible now because the technological gap has been closed.

To tokenize an asset, it is necessary to create a digital representation of the asset as a token on a blockchain.

The fund has a scale of $10 million and aims to encourage more companies to settle in Hong Kong by combining blockchain and artificial intelligence to provide a convenient and cost-effective platform.

According to a research report by Bank of America, the tokenized gold market surpassed $1 billion in value last month, driven by the tokenization of real-world assets such as precious metals on the blockchain. Tokenization offers the convenience of buying and selling these assets around the clock without traditional brokers. Bank of America sees the tokenization of real-world assets as a key driver of digital asset adoption, providing exposure to physical gold, 24/7 real-time settlement, no management fees, and no storage or insurance costs. Tokenization of the gold supply chain could benefit ESG-focused investors that need proof that gold came from a specific mine or region, the report added.

Gold-backed tokens are a next-generation digital derivative (structured product) of gold.

On Apr. 11, tokenization infrastructure provider Tokeny announced a new partnership with Ethereum real-estate tokenization marketplace CoFund. The deal would enable CoFund to issue regulatory-compliant ERC-3643 security tokens on the Polygon (MATIC) network to tokenize a $10 million hotel in the Indonesian island resort of Bali. 

In this article, we dive into on-chain asset tokenization on basis of a paper called “Relevance of on-chain asset tokenization in crypto winter” and analyze the latest news in this field.