- Chainlink Labs has expanded its partnership with Arta TechFin to include the issuance of stablecoins and real estate tokens as the race to dominate the $16 trillion tokenization market continues.
- The two will release a market standard for originating, distributing and custodying tokenized assets across different blockchains in Hong Kong and beyond.
Tokenization is emerging as the prime market for blockchain interruption, and several blockchain networks are racing to dominate the market, which studies claim will be worth $16 trillion by the decade’s end. With its advanced oracles network, Chainlink has emerged as a key player, and its latest partnership with Hong Kong-based Arta TechFin will further strengthen this dominance.
The two announced Tuesday that they are expanding their existing partnership to include other verticals, mainly targeting the tokenizing of real-world assets.
Under the partnership, the Hong Kong Stock Exchange-listed financial services firm will leverage Chainlink services for:
- Tokenized funds
- Stablecoins
- Tokenized real estate
ARTA offers its clients bespoke financial management solutions that include asset management, brokerage, money lending and insurance brokerage.
The firm will “integrate and leverage a full suite of Chainlink services to provide a wide range of innovative tokenized real-world asset products and services to asset owners and regulated financial institutions.”
While full of opportunities and promise, tokenization is still relatively young, and most of the standards and rails have yet to be defined or established. Through the partnership, the two will develop standards for issuing, distributing, exchanging and custodying tokenized assets. They believe this will bring a wide range of critical asset data on-chain and unlock new use cases and business models.
ARTA added that several companies in Hong Kong are currently exploring tokenization and are in search of platforms that offer great access to turnkey solutions. The city-state has been on a campaign to promote blockchain and digital assets; as Crypto News Flash reported, Hong Kong recently took after the US and licensed spot ETFs for Bitcoin and Ethereum. It has also issued licenses to several crypto businesses and lobbied major banks like HSBC and Standard Chartered to welcome all crypto players.
Chainlink to Dominate RWA Tokenization
“We are delighted to deepen our strategic partnership with Chainlink Labs to effect a revolutionary transformation of our best-in-class financial products and services,” commented Eddie Lau, the CEO of Arta Global Market, a blockchain-focused subsidiary of ARTA.
Lau believes the partnership will satisfy a prevailing need in Hong Kong for an “end-to-end solution that addresses pain points from off-chain primary origination and secondary trading to enhanced product integrity.”
Chainlink and ARTA first partnered in November last year. The Hong Kong firm was developing interoperable fund tokens and brought on Chainlink Labs for fiat-based investment returns to its investors.
Commenting on the new partnership, Chainlink founder Sergey Nazarov stated:
Hong Kong continues to show itself as a key hub for digital asset innovation, where we’re seeing cutting-edge implementations from firms like ARTA for the improvement and greater evolution of the blockchain space in general.
LINK trades at $16.85, trading sideways in the past day amid a 29% rally in the past week.
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