Asset tokenization expected to speed capital flows, says Chainlink's Nazarov
Asset tokenization is expected to enhance capital movement in traditional markets, according to Chainlink co-founder Sergey Nazarov. This shift will increase capital velocity in asset classes like treasuries, equities, private credit, commercial debt, and real estate. Nazarov emphasized the need for high-quality assets on-chain and frictionless payment systems for institutions. Chainlink announced a partnership with Kinexys and Ondo Finance to develop payment rails for trading tokenized real-world assets. The partnership successfully tested the exchange of Ondo's tokenized US Government Treasuries Fund using Chainlink's Runtime Environment. This initiative aims to foster a cycle of increased asset and payment systems on-chain. The collaboration indicates growing institutional acceptance of cryptocurrencies and Web3 technologies, influenced by favorable regulatory changes in the U.S. Chainlink's Runtime Environment connects smart contracts with real-world data and aims to modernize legacy financial systems. Nazarov highlighted the importance of establishing a competitive edge for U.S. tokenized assets in the global finance landscape.
