- Chainlink, a decentralized oracle network that’s become essential infrastructure for making tokenization secure, scalable, and trusted.
- Tokenization enables direct trading of shares on the blockchain, eliminating the need for middlemen and market hours, and providing 24/7 access.
Tokenization is the process of turning real-world assets, like stocks, real estate, gold, or even art, into digital tokens that live on a blockchain. Each token represents a share of ownership in that asset, and once it’s tokenized, it becomes much more flexible.
For example, instead of buying a $1,000 share of a private investment, you could buy just $50 worth in token form. That token can be traded, transferred, or used in blockchain-based financial apps, making investing more accessible, efficient, and open to anyone with an internet connection.
This week, Crypto News Flash reported that Chainlink has been ranked as the network that’s leading the charge in real-world asset tokenization by Santimet, a financial market data and content platform. And why is Chainlink the most mentioned name in tokenization? Let’s have a look.
1. Markets Are Tired of Banking Hours
Ever tried to buy or sell a stock after 4 PM on a Friday? Good luck. Traditional markets have strict trading hours and slow settlement times. On-chain trading on Chainlink is changing all of that.
Tokenized stocks can trade 24/7, just like crypto. And instead of waiting days for a trade to settle, it can happen instantly, sometimes within seconds. Chainlink helps make this possible with real-time price feeds and infrastructure that connects blockchains to traditional data and provides accurate price data.
2. Borderless investing
Tokenized shares are opening the doors to global investing. You no longer need a brokerage account or worry about converting currencies just to buy a U.S. stock. No matter where you are, Nairobi, New York, or anywhere else, you can now own a piece of a real company with just a few clicks. It’s easy, affordable, and open to everyone.
Thanks to platforms like xStocks, anyone can invest in real shares straight from their phone or laptop, no fancy setup or insider access needed.
3. Hello Automation
The existence of middlemen, brokers, clearinghouses, and custodians in traditional finance always adds a layer of extra fees, delays, and complexity. To solve this, smart contracts use automated code that runs the process instantly and securely without middlemen.
Chainlink launched the Cross-Chain Interoperability Protocol (CCIP) in 2023. It lets tokenized assets move across different blockchains and supports programmable transfers, so delivery and payment happen at the same time, in one seamless transaction.
4. Trust and Transparency
One of the first questions people ask about tokenized assets is, “Are they actually real?” It’s a fair concern. That’s where Chainlink’s Proof of Reserve steps in. It gives anyone, whether it’s an investor or a regulator, the ability to check on-chain that real, verifiable assets fully back those tokens.
And when it comes to staying compliant with financial regulations, Chainlink has that covered. Its Automated Compliance Engine (ACE) helps ensure that only the right people can access certain assets, based on things like identity, location, or investor status. It all happens in real time, across multiple blockchains, keeping tokenized markets secure and legally sound from the ground up.
5. DeFi Composability
Tokenized stocks are programmable assets with real utility. Once they’re on-chain, you can do much more than hold them. You can use them as collateral in DeFi, stake them to earn rewards, swap them instantly, or plug them into automated trading strategies. What makes all of this possible is still Chainlink’s CCIP, which connects these assets across different blockchains.
That means a tokenized stock issued on Ethereum (ETH) could be used in a lending app on Avalanche (AVAX) or traded on a DEX on Arbitrum. This further unlocks interoperability and liquidity portability. Already, Chainlink is putting this into practice by working with SWIFT, DTCC, and leading asset managers.
They’re already powering real-world tokenized stock pilots on platforms like 21X and Aktionariat, helping shape the future of how financial assets move and operate on-chain.