The future of capital markets lies in tokenization, and Coreum is positioned as a key enabler for institutions to issue, manage, distribute and trade RWAs.
Legacy financial systems are under pressure to evolve as global payments revenue is projected to reach $2.3 trillion by 2028, signaling a shift as cash usage declines and digital transactions reshape the industry.
This article explores how Coreum’s infrastructure, Smart Tokens, and tokenization standards are driving a digital-first financial ecosystem by enhancing efficiency, reducing counterparty risk and expanding global liquidity.
Why Coreum Leads in Tokenization
Coreum’s infrastructure is designed to meet the demands of global markets, providing compliance and security features such as:
- AML/CFT Compliance Monitoring: Integrations with Anchain.AI, leveraging AI driven tools for security and analytics.
- Regulated Custody: Institutional-grade storage and staking services through BitGo.
- Bespoke Stablecoins: Enabled by Brale, which supports compliant and customizable issuance for fully backed stablecoins.
- ISO 20022 Compatibility: Integrated at the protocol level, offering increased speed and reliability in financial messaging for global payment networks.
These features, along with other attributes, position Coreum’s blockchain to perform as a robust infrastructure for financial markets, bridging the gap between traditional finance and the blockchain.
Smart Tokens: A Next-Generation Tokenization Standard
Coreum’s Smart Tokens are native blockchain assets designed to unlock the full potential of tokenization. Embedded directly into the blockchain, Smart Tokens eliminate the need for external smart contract interactions, offering lightweight, customizable, and reliable utility out of the box. These tokens allow enterprises and developers to assign specific behaviors and functions to tokens, enabling them to operate independently on the chain’s storage while maintaining efficiency and security.
Key features of Smart Tokens include:
- Integrated Compliance: Built-in AML/KYC capabilities, along with whitelisting, clawback, and freezing functions, ensure regulatory adherence.
- Native Programmability: Smart Tokens are lightweight, flexible, and highly extendable, allowing developers to assign unique properties and functionalities to fungible, non-fungible, and hybrid tokens. With predefined features like minting, burning, and access control, they offer versatility while reducing risks tied to traditional smart contracts.
- Cross-Chain Compatibility: With full IBC integration, Smart Tokens are cross-chain compatible with a growing ecosystem of interoperable networks, including the XRP Ledger, supporting expanded use cases.
- Predictable Costs: Deterministic gas fees ensure transparency and predictability, allowing institutions to budget accurately for on-chain operations.
These features make Smart Tokens ideal for targeted areas like:
- Commercial Real Estate
- Art and Collectibles
- Infrastructure & Supply Chain Management
- Tokenized Funds (e.g., ETFs, equity instruments)
- Private Placement Funds
- NFT Estate Planning
Smart Tokens combine value and data into a single asset, enabling developers to build robust dApps with predictable execution. Unlike traditional smart contracts, they mitigate risks through on-chain transparency and reduced vulnerability to exploits.
The Need for Tokenization Standards in a Multi-Chain World
The demand for tokenization standards is growing rapidly, as ecosystems like Ethereum demonstrate the transformative impact of frameworks like ERC-20 and ERC-721, which underpin over 90% of DeFi and NFT projects. Notably, Ethereum’s ERC-3643 standard emphasizes regulatory compliance and efficient management for tokenized assets. However, Ethereum’s limitations, such as susceptibility to re-entrancy attacks, along with high and non-deterministic gas fees, pose challenges for scalability and institutional adoption.
Meanwhile, the absence of a unified standard for tokenized RWAs in the Cosmos Ecosystem presents significant challenges to achieving advanced interoperability and multi-chain scalability. Coreum’s Smart Tokens address these gaps by offering a composable standard with built-in IBC integration, programmable compliance, and advanced asset management capabilities, positioning real-world assets to interoperate with the internet of blockchains.
Bridging XRPL and IBC Ecosystems
Coreum’s decentralized bridge to the XRP Ledger uniquely facilitates interoperability between XRPL and the internet of blockchains connected through IBC. With two-way functionality, the bridge unlocks extended DeFi functionality for XRPL native assets.
By linking XRPL’s efficient payment protocol with Coreum’s robust infrastructure, the bridge allows developers to build multi-chain smart contracts, while allowing anyone to transfer tokenized assets, and access liquidity across Cosmos-based DeFi protocols. Its non-custodial architecture, supported by relayers, ensures secure and seamless communication, making Coreum’s bridge essential for unifying ecosystems.
Transforming Capital Markets Through Tokenization
The global tokenization market is projected to reach $5.6 billion by 2026. This surge reflects a growing demand for transforming capital markets, as traditional systems face challenges like illiquid assets, inefficiencies in settlement, and barriers to global participation. Tokenized real-world assets unlock liquidity, streamline asset management, and enable fractional ownership, paving the way for a more inclusive financial ecosystem.
Coreum’s enterprise-grade blockchain, with its compliance, scalability, and interoperability, serves as a hub for tokenization, simplifying the management of real-world assets and building a borderless foundation for the future of global finance.
About Coreum:
Coreum, the world’s first Superledger, is a 3rd-generation, layer-1 blockchain architected for enterprises of any size. Built on the Cosmos SDK and leveraging Complete BFT consensus, Coreum ensures high security and scalability. With transactional speeds up to 7,000 TPS and ISO 20022 compliance, Coreum enables fast, secure, and economical transactions across its PoS network.
Website: coreum.com
Twitter: @CoreumOfficial
TG: @CoreumOfficial
Contact: hello@coreum.com
