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The RWA and tokenization world is taking the centerstage with a new Phlomis Finance and Chromia partnership.
Key Notes
Phlomis Finance is diving deeper into the RWA and tokenization worlds.With Chromia, Phlomis aims to boost access to financial credit and equity instruments.Many established firms and startups are doubling down on RWA today.Phlomis Finance, supported by American cryptocurrency exchange Coinbase Global Inc (NASDAQ: COIN) plans to leverage Chromia’s relational blockchain infrastructure and its custom-built Chromia Real World Assets Protocol (CRWA). This integration aims to provide innovative solutions in the tokenization of Real-world Assets (RWA). In the long run, this project aims to establish authority in this rapidly evolving landscape.
Phlomis Finance Targets Real-World Assets Pain Point
By providing tokenized RWAs, Phlomis Finance focuses on connecting crypto investors with various investment options. These include conventional financial credit, debt, and equity instruments that are traditionally limited to established financial institutions. The new development eliminates barriers to certain investments.
It provides investors with easy access to institutional-grade large-scale assets, such as global infrastructure projects, climate-focused initiatives, and private credit offerings. With the infrastructure provided by Chromia, Phlomis Finance plans to offer “resilient investing” by tokenizing leading funds in Europe and Asia.
This platform intends to bring greater on-chain transparency to transactions, improve financials, and impact results. Over the years, the integration of Traditional Finance (TradFi) and Decentralized Finance (DeFi) has taken the front row in the financial landscape.
Major players like BlackRock and Bank of America are beginning to understand the transformative potential behind the shift better
A few of these institutional investors are putting effort into pioneering the integration of TradFi and DeFi. BlackRock took a significant step towards listing spot crypto Exchange-Traded Funds (ETFs) earlier this year.
The core of Phlomis Finance’s partnership with Chromia is the utilization of its Real World Assets Protocol, which plays a crucial role in RWA tokenization. According to Henrik Hjelte, co-founder of Chromia, “Chromia’s relational blockchain provides enhanced scalability and the ability to store complex documents on-chain, addressing limitations seen in traditional blockchain systems.”
Chromia’s Real World Assets Protocol is lauded as a system that can provide solutions to some of the challenges encountered by RWA currently. Todd Miller, Managing Director of Phlomis, identified some of these challenges, including scalability, high transaction costs, and limited access to essential documents.
Phlomis Finance is focused on addressing these pain points to create a seamless investor experience. It plans to launch the first set of tokenized products in the fourth quarter of this year.
Tokenization of Real-world Assets Takes Front Stage
Generally, the tokenization of RWA is gaining traction at a fast rate. In July, Ethereum-based central banking protocol MakerDAO announced plans to host the Spark Tokenization Grand Prix, a competition to tokenize RWA. The competition will direct $1 billion worth of tokenized RWA into MakerDAO’s DeFi ecosystem. Applications for the Grand Prix opened on August 12, 2024.
A week ago, Bitcoin multichain Layer-2 network Anduro floated a new project called Avant. The project is a tokenization platform for issuing and investing in RWAs on the Bitcoin blockchain. Anduro’s plan with Avant is to expand Bitcoin’s utility beyond its traditional use as a store of value.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
