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Why Proof of Reserves is Vital for Real-World Asset Tokenization
Digital assets platform Matrixdock is guaranteeing the transparency of its tokenized real-world assets through a new integration with blockchain oracle Chainlink.
Matrixdock’s partnership with Chainlink uses the oracle to provide API-readable access to their bank accounts, enabling users to verify the holdings backing its Short-term Treasury Bill (STBT) token. “At any given moment, anyone can verify the number of STBT tokens and the dollar value of the assets in the bank account,” Ben Stani, business development and sales lead at Matrixport, told Decrypt.
Matrixport subsidiary Matrixdock provides institutional and accredited investors with transparent access to tokenized real-world assets. It offers an unchangeable record of ownership, daily proof of reserve, and complete protection against bankruptcy, “setting a new standard for asset-backed tokens in terms of on-chain transparency,” Stani told Decrypt.
Financial services platform @Matrixdock, a brand wholly owned by @realmatrixport, has integrated #Chainlink Proof of Reserve (PoR) to help secure the minting of tokenized short-term U.S. Treasury bills.
Why Chainlink PoR is a must-have for real-world asset tokenization… pic.twitter.com/d6JQwmRoDz
— Chainlink (@chainlink) July 26, 2023
The core of Matrixdock’s offering is STBT, an ERC-1400 token that’s backed by short-term U.S. Treasury securities. “We recognized a growing need for tokenizing real-world assets on-chain and started with the simplest version of this product, which is tokenizing U.S. Treasuries,” Stani told Decrypt, adding that the token is “arguably safer than most asset-backed stablecoins.”
Tokenizing T-bills
Stablecoins have faced increased scrutiny due to their opaque nature, while the collapse of Terra’s UST in 2022 did little to instill confidence among investors. The ongoing bear market has created an appetite among participants in the crypto ecosystem for a more secure method to preserve their capital.
“Tokenizing T-bills is arguably the safest way to keep your dollar assets, as they are backed 100% by the U.S. government, which also backs the U.S. dollar,” Stani said. “Given the recent increase in rates over the last 18-24 months, there’s been an opportunity in the market to earn that risk-free rate. This has attracted interest from many crypto-native players.”
What Is Tokenization?
Traditional asset management is a laborious process. It often requires the involvement of numerous middlemen, including various state bodies and regulators. Assets such as stocks, bonds, property, or even land can often be prohibitively expensive and time-consuming to manage, putting them beyond the reach of the vast majority of the world’s population. What’s more, traditional asset management typically involves complex legal agreements and lots of paperwork, which makes it all very difficult…
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Matrixdock has a diverse clientele. It includes crypto miners, venture capital funds, projects that have raised money and are waiting to deploy it, on-chain projects, vaults, DAOs, and different types of treasuries.
Currently, Matrixdock manages over $120 million in assets and has seen exponential growth since its launch five months ago. “The company’s primary focus is on tokenizing U.S. T-bills, with the potential market size being over 100 billion, considering the market cap of total asset-backed stablecoins,” Stani told Decrypt. “If you consider the outstanding market cap of U.S. Treasuries, the potential market expands into the trillions.”
