Real-life Examples: How Tokenization Reshaped Businesses — Case Studies

Tokenization, the process of converting real-world assets into digital tokens on a blockchain, has witnessed remarkable success stories in recent times. This transformative approach to asset representation brings efficiency and accessibility to traditional financial instruments. Let’s explore some recent examples of asset tokenization projects by prominent companies:

1. Siemens’ Digital Bond on Polygon Blockchain

• Siemens, a German manufacturing giant, issued its inaugural digital bond on the Polygon blockchain, embracing the efficiency and speed of blockchain transactions. The one-year maturity bond was issued on-chain, while investor proceeds were collected through conventional banking channels.

2. Goldman Sachs’ Digital Asset Platform (DAP)

• Goldman Sachs introduced its Digital Asset Platform (DAP) on the private blockchain stack Canton by Digital Asset. Collaborating with the European Investment Bank (EIB), the platform facilitates the issuance, registration, settlement, and custody of digital assets. EIB has subsequently issued its second euro-denominated digital bond on this platform.

3. Hong Kong’s Government Tokenized Green Bond

• In a groundbreaking move, Hong Kong’s government issued a $100 million tokenized green bond using Goldman Sachs’ tokenization protocol, GS DAP. Underwritten by four banks, the bond achieved a 4.05% yield and utilized the Central Moneymarkets Unit for issuance.

4. Hamilton Lane’s Partnership with Securitize

• Global investment manager Hamilton Lane collaborated with digital asset securities firm Securitize to tokenize its flagship direct equity fund through the Polygon blockchain. This initiative provides exposure to direct equities, private credit, and secondary transactions, managed by Securitize’s digital asset management arm, Securities Capital. The minimum investment for US investors is $20,000.

5. Swarm Markets’ DeFi-Compatible Stocks and Bonds on Polygon

• DeFi infrastructure firm Swarm Markets has launched tradable stocks and bonds on the Polygon blockchain, including assets like Apple and Tesla stocks and US Treasury bond ETFs. These tokenized securities are accessible to both retail and institutional investors, with no minimum investment requirement, though currently unavailable to US investors. The platform plans to expand its offering with more assets.

These success stories underscore the diverse applications of asset tokenization, ranging from traditional financial instruments to green bonds and direct equity funds. As more companies embrace this transformative technology, the landscape of finance is evolving, providing new opportunities for investors and enhancing the efficiency of financial transactions.