Onboarding the Buy-Side to Blockchain Rails

Tokenization aims to create robust secondary markets for private assets, integrate them into DeFi, and improve investment access. A key challenge is efficiently bringing existing assets onto the blockchain. For example, tokenized loan portfolios could be used as collateral in DeFi lending platforms. However, infrequent portfolio valuations (quarterly, semi-annually, or annually) are incompatible with the real-time nature of digital asset markets. To effectively tokenize the vast existing private asset market, systems are needed that continuously feed asset data to decentralized exchanges and lending platforms. This requires more than just transferring data from spreadsheets. Crypto markets demand high transparency, ideally with real-time data on reserves and holdings. 24/7 operation is also essential to maintain trust and minimize risk, meaning manual processes are undesirable. Crypto investors will expect real-time monitoring of underlying assets and fast transaction speeds. New digital-native assets, originating on-chain, already meet these requirements. But for existing assets, moving data from spreadsheets to a system that can record it on a blockchain and provide real-time access is crucial. Platforms like Inveniam and Accountable, and blockchain layers like Chainlink and Pyth, offer tools for asset managers to prepare for tokenization. Tradables with $1.7 billion in loans and Figure with over $10 billion in HELOCs are examples of assets already on-chain.