The 7th of July marks the formation of the ERC3643 Association, a collaborative effort between industry key players to catalyze worldwide adoption of the ERC3643 token standard for real-world assets tokenization to eliminate silos and ensure interoperability.
The founding members including both traditional players and technology leaders in blockchain industry: APEX Group, Aztec Group, Archax, Avantgarde Finance, Bitstamp, Capgemini, CMS, DLA Piper, DFNS, Invesco, Inveniam, Norton Rose Fulbright, Oasis Pro Inc., Polygon Labs, Reply, Rooba.Finance, Rethink Ledgers, Tokeny, and Token Forge.
The ERC3643 protocol, previously known as T-REX protocol, is an open-source suite of smart contracts that enables the issuance, management, and transfer of permissioned tokens, allowing token issuers to enforce compliance and to control their tokens, even on public blockchains.
After years of development and use with projects in production, Tokeny, an enterprise-grade tokenization platform and initial creator of the ERC3643 protocol, has decided to join forces with custody solutions, blockchain technologies, exchanges, integrators, asset owners and servicers.
Joachim Lebrun, Head of Blockchain at Tokeny commented: “We strongly believe in the importance of community-driven standardization in making finance accessible and efficient. That’s why we made the ERC3643 protocol open-source and conducted thorough audits to ensure that any developers have access to high-quality code for tokenization.”
ERC3643 tokens are portable and interoperable across various applications, including trading platforms and DeFi protocols. Each transfer of tokens can only occur when both the investor rules and offering rules are met. The investor rules are verified through users’ self-sovereign digital identities, ONCHAINID. This identity mechanism is the link between off-chain identities and on-chain ownership of tokens, ensuring compliance and security of tokens.
Over the past five years, the ERC3643 protocol has gained significant momentum and established itself as the industry standard for tokenization. The community has grown and generated a diverse range of use cases, from tokenized real-world assets and securities, to stablecoins and loyalty programs.
For example, using the ERC3643 protocol to issue private assets offers significant advantages. Investors can purchase digital securities directly from issuers and trade them peer-to-peer with any eligible counterpart, anywhere and at any time, which was previously impossible. This results in reduced costs for distribution and operations while expanding the reach of securities to a global audience and enhancing their liquidity.
To unlock the full potential of tokenization, it is crucial to foster collaboration among industry players and promote the widespread adoption of the ERC3643 protocol as the global industry standard. This is precisely the mission of the ERC3643 Association, a non-profit organization. The association is dedicated to three key objectives: providing developers with the tools and resources they need to deploy the smart contract easily, educating the market to dispel misconceptions about the risks of using open networks for tokenization, and promoting best practices, ethical behavior, and professionalism within the industry.
Dennis O’Connell, President of the ERC3643 Association, states, “Collaboration is the sole path towards achieving liquidity and interoperability. Each player must ensure that their technology can communicate effortlessly with one another, avoiding the creation of silos that mirror the fragmented systems of the traditional world. The only way to achieve this is through standardization, and the ERC3643 protocol is the key to this by enabling all participants to interact in a seamless and compliant manner. The future of finance is bright and full of possibilities, and by working alongside key industry players through our nonprofit association, we will lay the foundation for the future of the capital markets.”
The association’s founding members are working collaboratively to create a comprehensive set of resources that will enable any entities to easily use ERC3643 to tokenize their assets. By leveraging the expertise and knowledge of these esteemed partners, the ERC3643 Association is poised to deliver concrete results and make a significant impact in the tokenization landscape.
The ERC3643 Association is a non-profit organization regrouping industry leaders within a shared mission to advance the adoption of the ERC3643 standard and promote the development of a standardized, secure, and compliant tokenization framework. The association brings together the expertise and resources of its members to foster collaboration, drive innovation, and create a more inclusive, efficient, and secure financial landscape. By supporting the widespread adoption of the ERC3643 standard, the association aims to unlock the full potential of tokenization and pave the way for a new era of global asset management.
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