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Tokenized Investment Assets
The Stellar network is a leader in the tokenized investment space, especially in the tokenized U.S. Treasuries space. By tokenizing securities on the Stellar blockchain issuers can benefit from improved operational resilience and capital efficiency.
How Tokenized Investment Assets Work
Tokenized investment assets include securities and commodities such as money market funds, ETFs, bonds, gold, and more, can all be issued on the Stellar network.
Tokenized Securities
A tokenized security is a particular type of financial instrument - a “security” - ownership of which is represented digitally by a token on a blockchain.
Tokenized Commodities
A tokenized commodity is a digital asset whose value is pegged to real-world assets (similar to how stablecoins function). Issuers use the blockchain to create a digital representation of the commodity and, ideally, ensure the digital asset is backed by reserves of the real-world commodity.
After tokenizing their assets, issuers can make them available through a digital wallet. In some cases, institutions choose to make these assets available in a closed wallet environment, while others may make them available to customers through multiple wallets, exchanges or on and off-ramps.
Disclaimer: Note, security and commodities issuers should ensure their assets follow regulatory requirements.
Explore Tokenized Assets on the Stellar Network
Asset issuers on the Stellar network have tokenized a variety of financial products including securities, commodities and more.
Franklin Templeton: BENJI
Each BENJI token represents one share of Franklin Templeton’s Franklin On Chain U.S. Government Money Fund.
WisdomTree: GOLD
Each Gold token, issued by WisdomTree, represents direct ownership of a one-troy ounce portion of a London Gold Market Association (LBMA) gold bar of…
ABN AMRO: APOCBOND
The APOC Bond is a bond issued by ABN AMRO on behalf of their client APOC Aviation.
Benefits
Issuance on the Stellar Network
Cost Reduction
Tokenization on Stellar offers capital efficiency gains by eliminating intermediaries, shortening settlement times, and facilitating 24/7 markets.
Operational Efficiency
On Stellar, issuers can leverage the power of a public blockchain to eliminate redundancy by maintaining an auditable single source of truth for transactions and payment flows.
Compliance and Controls
Built-in asset level features enable certain custom asset controls, such as KYC, Freeze and Clawback functionality on the Stellar network.
Speed
Transactions on the Stellar network confirm on average in just 3-5 seconds.
Low Cost
The average cost per transaction on the Stellar network is just $0.000005 per operation.
Trust-Based Consensus
Stellar’s Proof of Agreement consensus protocol prioritizes fault tolerance and safety, letting you focus more on business priorities and less on the security of the network.
Portfolio
Use Cases
Record Keeping
Institutions can replace redundant back-office systems by tokenizing assets on Stellar and using the blockchain to monitor share ownership,…
Liquidity
Businesses can benefit from near-instant settlement on Stellar versus T+1 transaction settlement time in traditional securities markets.
Investments
Customers can access fully reserved real-world assets via a Stellar-enabled digital wallet, without needing to store the physical assets themselves.
Case Study
WisdomTree: Making Digital Assets Mainstream
Find out how WisdomTree built a unified payments platform on Stellar, enabling customers to save, spend and invest fiat and digital assets all in one application.
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Explore
Learn to tokenize security assets on the Stellar testnet with no code required using the Stellar Asset Sandbox.
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Want to Know More?
Discover how your business can contribute to the digital asset ecosystem. To learn more about issuing an asset on Stellar, review the developer documentation.
For more specific inquiries, complete the form to connect with our partnerships team.