Tokenization: The Future Development Direction of the Financial Industry

Larry Fink, the CEO of BlackRock, believes that tokenization is the future of finance and a key market evolution. Research shows that real-world assets (RWA) are becoming an important component of the cryptocurrency industry. As of May 2024, the RWA market size has exceeded $6.6 billion, and it is expected that the asset tokenization scale will reach $10 trillion by 2030.

The World Federation of Exchanges recently published a paper, referring to tokenization as a natural progression in finance. Financial institutions such as JPMorgan and Fidelity International are also actively positioning themselves in this field. Custody trusts and clearing companies have completed pilot tests of fund tokenization technologies and standards. Deutsche Bank has joined the blockchain alliance led by the Monetary Authority of Singapore to explore interoperable tokenized fund blockchain platforms.

As blockchain narratives receive more and more attention, many projects are competing to become leaders in the field. Among them, IX Swap stands out with its unique approach and ambitious goals. IX Swap is a real-world asset tokenization launch platform and decentralized exchange that facilitates security token trading through licensed custodians and broker-dealers. Its aim is to democratize private market investment opportunities and address the liquidity challenges in the tokenization industry.

Julian Kwan, co-founder of IX Swap, explains that in 2017 most small cryptocurrencies lacked liquidity support. The emergence of Uniswap was a transformative innovation in the DeFi space, allowing anyone to create liquidity pools through smart contracts. IX Swap aims to be the Uniswap of the security token space, enabling RWA holders to legally create liquidity pools, thereby facilitating the trading of tokenized assets, addressing liquidity issues, and making private market investments more convenient.

The products offered by IX Swap include:

1. Secondary trading products: Allow trading of security tokens and fractionalized NFTs, digitizing traditional assets and providing access to real-world assets such as private equity and real estate.

2. Launch Platform: A crowdfunding platform that complies with regulatory requirements, providing unique investment opportunities in startups.

3. SaaS Solutions: Enhance the liquidity of the RWA platform through automated market makers and liquidity pools.

4. IXS Token: The native token of the IX Swap platform, it is the foundation of its ecosystem.

IX Swap, although not fully decentralized like Uniswap, still offers many exciting opportunities within legal boundaries. It provides accessible services within the KYC framework, allowing more users to participate in tokenization asset trading, bridging the gap between traditional finance and decentralized markets.

The IX Swap team has been dedicated to developing automated market makers for the security token industry since 2017. The platform officially launched in September 2021 and was recently acquired by the parent company of InvestaX, a leading tokenization platform licensed in Singapore. IX Swap has completed multiple rounds of financing and has established strategic partnerships with various companies, aiming to drive innovation in the RWA market.

In terms of competition, IX Swap offers a unique, legitimate, and compliant secondary trading platform for RWA tokens. Compared to other platforms, IX Swap operates an AMM model and provides retail investors with a securities license, supporting stock trading, which is a unique feature in the industry.

The IXS Token has outperformed the market since November last year and has entered a sustained upward trend. The number of smart wallets and holders is steadily increasing, but the balance increase is not significant. A large wallet belonging to a well-known KOL was found to hold approximately $150,000 worth of IXS tokens.

The main challenges faced by IX Swap include market volatility risks, changes in the regulatory environment, fierce competition, as well as adoption and liquidity issues. Nonetheless, it tells an engaging story that showcases significant growth potential, and if it can maintain consistent and credible activities, it may ultimately become a pioneer in the field.