Earlier this month, Libre’s announcement opened the door for institutions to access next-generation blockchain technology. Libre is an L2 chain powered by Polygon CDK for institutions to issue tokenized assets easily and compliantly. Libre creates a better user experience and saves money by avoiding inefficient intermediaries, but does so in a compliant manner.
According to Libre founder Dr., it is this feature, automated intermediary, that is one of the most powerful value props of blockchain technology. Avtar Sehra, a pioneer of tokenization, had a name for what he was doing before the term “tokenization” was a well-established concept, although it has yet to capture the imagination of the financial world: Tokenization, or Mint some on-chain representation of off-chain assets.
Every major financial institution is investigating the technology—much of it happening at Polygon. Estimates vary, but Citigroup expects the number of tokenized assets to exceed $4 trillion by 2030.
Launched with the support of WebN and Laser Digital, Libre is a specialized institutional L2 chain built by Polygon CDK that will serve as an infrastructure for the compliant issuance and distribution of tokenized assets. Brevan Howard, a leading alternative investment manager, and Hamilton Lane, a leading private markets investment manager, plan to be the first issuers to strategically partner with Libre.
A word about the importance of Libre
It is easy for institutions to issue and distribute assets in compliance with regulations and easy for investors to obtain. In other words, Libre’s vision is to build an automatically compliant protocol while creating an environment for institutions to easily issue and distribute tokenized assets.
While some regulated securities are already tokenized, so too is some smart contract automation, such as delivery and payment or other automation. There are still problems of intermediaries and inefficiencies between the two main parties.
Now, Libre's founding belief is that relying on a centralized platform is not where the workload goes. Customers should not rely on these.
This compliant workflow is critical to institutional DeFi, which we believe is the future.
Once done at scale, it enables the entire compliance solution to work more seamlessly, which is why I'm so bullish on Polygan.
It is a bridge between WEB2 and WEB3, and a window for large amounts of funds to go to the blockchain.