Wetin You Really Get On-Chain?

If you buy token wey dem tie to gold, you fit redeem am collect the metal? Who go deliver am, and where you fit enforce that claim? Frederik Gregaard ask these questions to explain why e still see plenty of the tokenization wey e observe for TOKEN2049 Singapore as experimental. Cardano Community publish the interview on November 11, more than a month after the October 7–8 conference, where Cardano Foundation announce say their CIP-0113 programmable token standard don go live for mainnet.

Wetin buyer fit claim

Tokenized gold show the kind questions wey investor go face after dem buy. The terms of the issuance go determine whether the holder fit request physical delivery, which party go responsible to fulfill that request, and which jurisdiction go govern the claim. Gregaard use those questions judge whether tokenized asset dey deliver the rights wey investors dey expect from am.

CIP-0113 address how asset fit move between holders. E give issuers way to attach rules to native Cardano assets and make the network enforce those rules during transaction. Depending on the modules wey issuer use, transfers fit restrict to approved addresses, and tokens fit freeze. Issuer wey limit transfers to eligible participants fit use those controls apply im eligibility policy when the asset dey change hands.

Who fit invest for tokenized fund

Gregaard use reinsurance explain how tokenization fit change the size of investment. Reinsurance dey allow insurers transfer part of their risk to other institutions. For the interview, e compare the $100 million wey e associate with traditional access to that kind exposure with $50,000 for the example wey e describe.

Cardano Foundation be anchor investor for MembersCap’s MCM Fund I, wey dey offer qualified investors tokenized exposure to reinsurance. Cardano na one of the blockchains wey the fund support, and Hannover Re dey among the institutions wey dey support am. The Foundation talk say one transaction wey involve the fund na the first wey London Stock Exchange Group’s Digital Markets Infrastructure record.

The fund eligibility requirement show where identity dey enter. Gregaard describe how to link identity information wey dey off-chain to rules wey dem dey enforce on-chain. Legal Entity Identifier, or LEI, dey identify one organization. Verifiable LEI fit also verify the role of person wey dey act on behalf of that organization. For issuer, those ones na separate checks when company dey invest through authorized representative.

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How Veridian take use Cardano standard

Cardano Foundation confirm for October say Veridian, the independent company wey come out from im digital identity team, don tokenize im shares using CIP-0113. Gregaard talk say the number na 850,000 shares for the interview. Switzerland’s Capital Markets and Technology Association recognize the CIP-0113 implementation as equivalent to im CMTAT smart contract standard for certification purposes.

For Veridian own, Cardano fit enforce the rules wey govern who go receive share when e change hands. Wetin that shareholder fit claim from Veridian go follow the terms of the share issuance and the law wey dey govern am.