Chainlink is ushering in a new turnkey solution for institutions looking to conduct tokenization trials in the latest development for the tokenization industry.
Chainlink has introduced its new Digital Assets Sandbox (DAS) for financial institutions, which aims to accelerate digital asset innovation.
DAS will enable financial institutions to quickly experiment with new revenue-generating opportunities, like bond tokenization, with improved time-to-market and greater overall efficiency.
According to Angela Walker, the global head of banking and capital markets at Chainlink Labs, the new sandbox was born due to institutional demand for secure digital asset experimentation environments.
Walker wrote in an announcement shared with Cointelegraph:
“The Chainlink Digital Asset Sandbox addresses this need by enabling institutions to create rapid Proof of Concepts in days, not months, and leverage Chainlink Labs’ experience in research and development to bring these use cases to life.”
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Institutions need more access to blockchain technology
Large institutions could create more blockchain innovation and use cases, by having more access to safe testing environments.
This is partly why Chainlink decided to create its new sandbox. According to Walker:
“The institutional world needs access to the blockchain industry, and Chainlink is the safe and secure standard that has the capabilities to facilitate onchain finance at scale, improving financial industry infrastructure.”
The sandbox also offers institutions ready-to-use digital asset workflows beyond tokenized bonds, such as the possibility to experiment with real-world asset (RWA) tokenization.
This will help institutions build stronger business and investment cases for their digital asset strategies, wrote Kevin Johnson, the head of the innovation competence center at Euroclear:
“The Digital Asset Sandbox provides market participants with a safe environment where financial institutions and fintechs alike can experiment and understand how the technology impacts operating and business models.”
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Tokenization will be a $16 trillion market opportunity: BCG
Tokenization could be the next multitrillion-dollar market opportunity, according to the world’s largest management consulting firm.
The global value of tokenized illiquid assets will grow to an estimated $16 trillion by 2030, according to a report released by the Global Financial Markets Association (GFMA) and Boston Consulting Group.
In more conservative estimates, analysts at Citigroup predicted that another $4 trillion to $5 trillion worth of tokenized digital securities will be minted by the year 2030, according to a 2023 report.
According to estimates from Northern Trust and HSBC, 5% to 10% of all assets could be digitally tokenized by 2030.
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