A number of large banks and other traditional financial (TradFi) institutions are set to use the Solana blockchain for their tokenization efforts.
R3, a U.K. developer of blockchain technology for financial institutions, is teaming up with the Solana Foundation to bring the former’s clients and their tokenized real-world assets to Solana.
Through its blockchain platform, Corda, R3 holds over $10 billion in assets and counts the likes of HSBC, Bank of America, Bank of Italy and the Monetary Authority of Singapore among its participants.
Tokenization, the term for minting real-world assets such as stocks and bonds as digital tokens that can be traded on decentralized networks, is one of the principal use cases of blockchain technology attracting the attention and investment of the TradFi world.
A recent report by Boston Consulting Group and crypto payments company Ripple said the tokenization market could reach $18.9 trillion by 2033.
R3’s aim is to supercharge the scale and liquidity of the tokenized asset ecosystem by making the assets available on a public blockchain like Solana.
The total value of assets held on Solana may be dwarfed by Ethereum, but it processes more transactions and has more active addresses.
“As the world’s most used public blockchain, Solana … [is] the ideal foundation for the next generation of regulated digital finance,” R3 said in an announcement on Thursday.