Polygon Infrastructure Powers the Future of Finance

• Polygon has been at the center of asset tokenization: Sygnum Bank has tokenized private and bond markets, while Hamilton Lane and Apex Group have offered DLT-registered shares.
• Bitcoin Suisse issued a tokenized bond on Polygon, while Franklin Templeton launched its tokenized money market fund backed by US Treasuries in 2022.

Tokenization of real-world assets has emerged as one of the largest applications of blockchain technology, with trillions of dollars expected to be placed on the blockchain by 2030. Polygon is at the center of this revolution, with some of the world’s pioneering tokenization projects powered by the Ethereum layer 2 network.

21.co, a DeFi investment services firm, estimates that in a bullish scenario, the market size for tokenized assets will reach $9.95 trillion by the end of the decade, while Boston Consulting Group estimates the figure at $11 trillion.

This has heated up the race to dominate the tokenization market in recent years. Every network wants to be at the forefront of this financial revolution. However, only a few have seen significant user interest, and Polygon has been among the leaders, attracting both small-scale users and trillion-dollar giants.

Tokenization on Polygon Full Steam Ahead

As the network recently announced, it has attracted some of the world’s leading companies, which have issued hundreds of millions of dollars in real assets on-chain.

See more

One such pioneer is Franklin Templeton, the global asset manager with $1.5 trillion under management. In November 2022, the firm issued the Franklin OnChain US Government Money Fund (FOBXX) on Polygon. The fund offers a tokenized money market fund backed by U.S. Treasury securities.

While launch Templeton’s head of digital assets, Roger Bayston, revealed that the company chose Polygon for its “proven track record.”

Last year, another global asset manager followed Templeton’s lead and jumped on board. Hamilton Lane, whose assets under management have reached $850 billion, launched its second fund on Polygon, with Securitize offering access via a feeder fund.

In January last year, Hamilton Lane had released its first fund, which attracted $2.1 billion in investor commitments.

In the same month, Dutch banking conglomerate ABN AMRO released a €5 million digital green bond using the ERC-3643 standard. The issuance offered a glimpse into Polygon’s capabilities in sustainable finance.

A month after the issuance of ABN AMRO, German technology giant Siemens released a €60 million digital bond on Polygon.

“By moving away from paper and toward public blockchains for bond issuance, we can execute transactions significantly faster and more efficiently than we have been able to do with bond issuance in the past,” commented Peter Rathgeb, Corporate Treasurer at Siemens AG.

Several other companies in the cryptocurrency space and beyond have issued similar tokenized products, taking advantage of Polygon’s low fees and fast, secure transactions. These include Sygnum Bank, Bitcoin Suisse, Ondo Finance, and Bali-based real estate investment firm Cofund.

Meanwhile, MATIC professions at $0.4627, down 6.79% over the past day as the broader market bleeds. The overall market cap is down 3.8%, with some tokens such as Arbitrum, Optimism, Litecoin, and gaming sensation Notcoin all down over 10%.

Recommended for you:

No spam, no lies, just insights. You can unsubscribe at any time.

Source