Companies on the Australian Securities Exchange (ASX) may be able to trade tokenized bonds, stocks, funds or carbon credits after a successful proof-of-concept trial conducted by digital asset investment platform Zerocap .
On Monday, Melbourne-based digital asset investment platform Zerocap told Cointelegraph that it had successfully used Synfini to connect its custody infrastructure to the platform as part of an investment program. trial, enabling the trading and clearing of Ethereum-based tokenized assets.
The trial is part of ASX’s Distributed Ledger Technology (DLT)-based settlement project, Synfini, which launched in November. The platform provides customers with access to ASX’s DLT infrastructure, data hosting, and ledger services, allowing them to build blockchain applications from it.
Zerocap co-founder and CEO Ryan McCall said it happened last year and “it’s generated a lot of interest” in the institutional sphere, especially from companies exploring ways to tokenize and trade bonds, funds or carbon credits.
“Thinking beyond Bitcoin, Ethereum and other crypto assets, the tokenization of bonds, stocks, property, carbon credits, private equity and anything that is essentially illiquid, there is a strong value proposition here that we can basically tokenize any asset and connect it to the ASX ecosystem.
McCall pointed out that companies dealing with particularly “opaque and difficult to access” markets such as bonds and carbon credits are looking for ways to effectively reduce costs, save time on issuance and open up a wider access to investments via token offerings.
Asked if the ASX would be able to offer crypto trading through Synfini, McCall said “yes” but that he saw no indicators of interest in this area, as the ASX and others focus primarily on traditional/real world tokenization. assets.
It should be noted, however, that Synfini is a separate initiative from replacing ASX’s blockchain-based CHESS system which has yet to be implemented after facing years of technical issues.
McCall went on to suggest that Zerocap may consider officially launching tokenization and asset trading services through Synfini to institutions in the near future, as it has just passed the necessary steps for legal approval.
“Since then we’ve gone through the certification process to get into the production environment, which as you can probably imagine for any type of enterprise software, but certainly for an exchange it’s a fairly rigorous process. We have therefore just obtained production certification. So get ready to roll it out now,” he said.
McCall also pointed out that with the ASX being a trusted source to host digital asset trading, this would likely alleviate institutional concerns about counterparty risk in the crypto sector.
These risks have been prevalent this year due to several major crypto firms facing liquidity issues or going out of business completely in the case of Celsius, Voyager Digital and Three Arrows Capital.
“So counterparty risk, you know, credit risk in particular, I guess, is the biggest talking point in crypto right now with the 3AC disaster. And I think that just demonstrates the use case of what the ASX is trying to do here.
“You know, thinking about the ecosystem and investor protection and all that it offers, there’s definitely a need for something like that in digital assets,” he added.
The CEO of Zerocap also suggested that Synfini will likely be used by a wide range of businesses, as the platform is user-friendly and removes many variables for businesses.
“If a custodian, fund manager or any application developer wants to come and build a blockchain application, they can do it on this Synfini platform without having to worry about infrastructure management, which is pretty cool “, did he declare.
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Zerocap recently participated in a token carbon credit transaction in late June, with the company providing market-making services and liquidity for an exchange between large family-owned Australian office Victor Smorgon Group and BetaCarbon, a carbon trading platform based on the blockchain.
The deal was also facilitated through A$DC, a fully AUD-backed stablecoin developed by Australian “big four” bank ANZ.