The blockchain industry’s success hinges on its integration with the traditional financial sector. This goes beyond ETFs enabling cryptocurrency investments in conventional ways. Equally crucial is the penetration into payments and traditional banking services. Blockchain’s purpose isn’t just for investment; it’s to offer an alternative to traditional systems. Things are starting to move in the right direction. Finest, a service on Cardano, facilitates the tokenization of real-world assets. Users can purchase tokenized commodities, stocks, bonds, and art using stablecoins or ADA. The service is fully compliant with legal regulations.
About Finest
Finest was established by integrating three well-known Cardano projects: FluidTokens, IAMX, and NMKR.
FluidTokens offers advanced Web3 solutions and DeFi services, facilitating seamless tokenization and trading. IAMX handles identity management and regulatory compliance, ensuring all transactions meet the highest legal standards. NMKR provides the tokenization infrastructure and token management, ensuring real-world assets are securely minted and accurately reflect ownership.
The collaboration of experienced teams has led to the creation of Finest, a platform for tokenizing real-world assets.
I was surprised to log in with a password and username instead of connecting a Cardano wallet. Currently, the platform is more like an investment app for regular users than blockchain fans.
Upon logging in, users are prompted to complete a quick and hassle-free KYC process. Afterward, they can transfer ADA to their accounts, or use a traditional payment card. ADAs are automatically converted to stablecoin USDC. The platform will soon support the Cardano stablecoin USDM. Polygon users can also use the platform and send stablecoin USDC to their Finest account.
The platform launched on the Cardano main-net on August 15, offering 500 tokens of Black Galaxy Granite. The token, with the ticker GRNT1, was priced at $42.2. This token gives you full legal ownership over 0.1kg of Granite. The average return on investment after 3 months is 10%.
Finest partners with LCX Exchange, a regulated company. LCX serves as the legal issuer and physical validator of the tokenized Granite, which is tokenized under the Liechtenstein Blockchain Act.
The demand was so high that the offer quickly sold out. At the time of writing, no additional tokenized commodities were available for purchase.
Since the platform didn’t prompt me to connect a Cardano wallet or provide a blockchain address, I don’t know if I would have tokenized Granite in my wallet or not. Finest seems to offer this option in the withdrawals section, which is great.
Hopefully, another batch of Granite or other tokenized commodities will be available soon.
Finest has launched, but many features are still in development. Additional options will be introduced in the future.
Tokenization of Real-World Assets
Tokenizing real-world assets offers numerous benefits to the blockchain industry. As mentioned earlier, it bridges the gap between traditional financial infrastructure and blockchain technology. Users of legacy systems will gradually transition to blockchain, often without even realizing it.
Finest converts fiat currency into stablecoins on the blockchain. Even when using a payment card, USD or other fiat currencies are converted to USDC or another stablecoin. This means that even an ordinary user, unfamiliar with blockchain, will end up owning stablecoins.
RWA platforms enhance liquidity in the crypto industry through tokenized commodities and other assets. Blockchain provides users with new opportunities, such as 24/7 trading, global accessibility, and the integration of traditional assets with DeFi. Imagine trading tokenized commodities or Apple shares on Cardano DEXs like Minswap or Axo—this could soon become a reality.
These options are accessible to people from the West and developing countries provided their identity can be verified. They can start investing in assets like gold or shares, offering opportunities many of them have never had before.
Finest offered an investment opportunity in tokenized Granite, addressing two key issues.
First, it tackled the mine’s lack of liquidity, enabling the mine to scale up operations by securing funds for trucks, fuel, and other necessities.
Second, it made investing in mining operations accessible to retail investors, which was previously extremely difficult.
Reducing the number of costly middlemen between the mining company and buyers can significantly increase yields. It was positive to see more stories like this.
This solution simplifies the process for everyone to invest and potentially earn from the mine’s success. However, remember that every investment carries risk. No yield is risk-free, so always conduct thorough research before using blockchain services.
Conclusion
Stablecoins on the blockchain have been a significant success, with their variety continually expanding. Stablecoins are issued by payment companies. Another major stablecoin from Ripple is on the horizon. Tokenizing commodities, bonds, and stocks, and enabling their trading on the blockchain, is the next logical step in adoption. Across nearly all relevant ecosystems, there’s an effort to tokenize real assets. What once seemed like a distant dream during the last bull run is now becoming a reality.