Tokenization Standardization Has Arrived With the ERC3643 Association
The advent of blockchain technology is widely acknowledged as one of the most innovative developments of this century. Its unparalleled ability to transfer infinite value instantaneously across borders has started to redefine our financial ecosystem.
It’s no secret to anyone who’s watched this space that tokenization and blockchain integrations into our financial system is the inevitable future, the question is how and when will this reach critical mass?
At Tokeny we believe that bringing compliance on-chain at the smart contract level will permit mass adoption, because it enables mass tokenization.
We made this possible with the ERC3643 token protocol. This open-source suite of smart contracts enables the issuance, management, and transfer of permissioned tokens. This allows token issuers to tokenize any real world asset or financial product, enforce compliance and control their tokens, on any EVM blockchain, even on public blockchains.
Open Sourcing the Code to Ensure Access
Although Tokeny was the architect behind the ERC3643 standard, we understood that retaining the ‘keys’ wouldn’t align with our broader mission of making a universally recognized compliant token standard, so we elected to make it open-source.
From a traditional business perspective, making proprietary solutions open-source might seem counterintuitive. However, our vision transcends short-term gains; the more entities that leverage this standard, the sooner we can revolutionize the industry.
This philosophy echoes one of the more profound business decisions of our time by Elon Musk of Tesla. Musk made Tesla’s EV technology patents open-source, recognizing that his real competition was not other electric vehicle producers but gasoline-powered cars. Tesla’s mission was to accelerate sustainable transport, not merely to outcompete other electric vehicle manufacturers.
Similarly, Tokeny’s true competition isn’t other tokenization platforms; it’s the incumbent legacy systems that govern our financial world today.
Creating an Industry-wide Association to Accelerate Adoption
A few weeks ago, we formally launched the ERC3643 association alongside industry leaders and incumbents including the following: