Backed Integrates with Chainlink to Bring Tokenized RWAs To Ethereum & Other Chains

Real-world assets tokenization platform Backed is expanding its platform to some of the crypto industry’s biggest blockchains. By incorporating Chainlink’s price feeds, it becomes possible for many more blockchains, protocols and dApps to make use of its tokenized RWAs, the company said.

Backed’s platform is designed to be blockchain-agnostic, meaning that it can in theory run on any kind of decentralized ledger. Still, there needs to be some kind of interface between the individual blockchain platform and traditional finance. Backed has solved this with Chainlink’s decentralized price feeds, ensuring its tokenized RWAs are accessible on Ethereum, BNB Chain, Avalanche, Arbitrum, Fantom, Gnosis and Polygon.

According to Backed, Chainlink’s price feeds serve as an independent price indicator for assets including bIB01, bIBTA, and bCSPX, which represent RWAs such as stocks, bonds and ETFs.

Switzerland-based Backed is pioneering the ability to bridge RWAs to the DeFi industry. It issues ERC-20 tokens representing traditional financial assets that are freely transferable across wallets. The tokens are fully collateralized by the underlying asset, and in full compliance with Switzerland’s DLT act.

By bringing RWAs on chain, Backed reckons it is increasing accessibility to capital markets, enabling a new and more open system that will forever change the way people trade and invest in financial assets.

Backed’s head of product Giorgio Giuliani said the expansion provides greater options for its clients and supports a more diverse range of DeFi applications. “Natively issuing [RWAs] on these new chains brings our products to large and active user bases, saves costs, and provides better market access for tokenized real-world assets,” he explained.

The DeFi ecosystem has embraced Backed’s innovation, with a number of notable projects creating marketplaces around its composable tokens. For instance, Angle Protocol uses Backed’s bC3M and bHIGH tokens as a form of collateral for its agEur stablecoin and lending pools, while Ribbon Finance leverages blB01 tokens for yield generation.

RWAs are touted as the future of asset trading, and they can play a major role in accelerating interest in DeFi among traditional financial institutions. RWA tokenization creates a strong incentive for companies to trade these assets on the blockchain, where they can benefit from transparent prices and greater liquidity.

Moreover, DeFi provides additional opportunities to profit from RWAs, as they can be used as collateral, allowing depositors to earn interest by lending them out. Borrowers can also benefit from accessing credit without off-ramping crypto assets to fiat. Another key advantage is that it’s possible to tokenize just about any kind of RWA, from real estate to carbon credits and government bonds.