DeFi Industry Leaders Form Tokenized Asset Coalition

Table of Contents

• A Unified Vision for the Future of DeFi
• Challenging Legacy Financial Systems

A consortium of industry-leading decentralized finance (DeFi) companies has announced the formation of the Tokenized Asset Coalition (TAC), with the initiative of driving and bringing asset tokenization to a better standard.

According to the coalition, they aim to bring the next phase of assets on-chain, leveraging the capabilities of real-world asset tokenization through education and advocacy.

The founding members include Aave, Centrifuge, Circle, Coinbase (through its Layer-2, Base), RWA.xyz, Goldfinch, and Credix. The Coalition’s launch comes at a time when asset tokenization is increasingly seen as the next frontier in financial innovation, promising to bring about greater efficiency, transparency, and inclusivity in the financial world.

A Unified Vision for the Future of DeFi

The TAC has positioned itself as a champion for the adoption of public blockchains, asset tokenization, and institutional DeFi. By doing so, the Coalition aims to transform how capital is raised, invested, and managed on-chain. Their vision is to create an ecosystem that is open, equitable, and transparent for investors.

Central to the TAC’s mission are three main objectives (as described by the consortium):

1. Education: By creating and sharing educational content, hosting events, facilitating discussions, and offering insights, the TAC seeks to deepen trust and foster a comprehensive understanding of asset tokenization within the financial community.

2. Advocacy: The Coalition aims to set industry standards by developing shared principles and best practices. By offering industry recommendations, TAC hopes to ensure a compliant and sustainable future for asset tokenization.

3. Adoption: Recognizing the technical demands of the new era, the TAC will focus on building a scalable on-chain infrastructure. This would cater to a range of stakeholders including investors, issuers, and everyday users, driving the widespread adoption of tokenized real-world assets.

Challenging Legacy Financial Systems

The TAC believes that the modern crypto framework can offer superior efficiency and transparency compared to traditional financial mechanisms. By fostering collaboration and leading the development of on-chain infrastructure, they aim to address the traditional financial sector's shortcomings, including its inefficiencies and lack of transparency.

The Coalition's approach is integrative, seeking to bring together organizations with a unified vision for tokenized real-world assets. Their goal is to highlight and promote use cases that demonstrate the tangible benefits of crypto and asset tokenization.

While the TAC has been initiated with seven founding members, they are open to expanding. The Coalition has extended an invitation to other relevant entities to join their mission, exrpressing confidence that collective efforts can usher in a new age of efficiency, transparency, and accessibility in global finance.

The announcement of the TAC's formation follows closely on the heels of other notable collaborative ventures in the DeFi sector. Of recent note is South Korea's Mirae Asset Securities and Polygon Labs announcement of the formation of Mirae Asset Security Token Working Group, with Polygon acting as a technical consultant. The former is a financial services firm with over $565 billion in assets under management.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.