The Ethereum">Ethereum Improvement Proposal ERC-3643 has emerged as an officially recognized standard for tokenizing real-world assets in a compliant and regulated manner. According to a December 15th announcement, the proposal reached its final status after formal review and agreement within the Ethereum community.
ERC-3643 provides a framework for securities tokenization, real-world assets (RWAs), payment systems and loyalty programs on Ethereum. It verifies users’ eligibility for a token via self-sovereign identity, ensuring anonymous yet verifiable credentials.
The approved standard incorporates two permission layers for enhanced security and compliance. The first focuses on identity and eligibility verification using ERC-734/-735 standards to confirm necessary claims are authenticated. The second layer implements restrictions on token circulation like daily volume limits and maximum token holders.
Asset tokenization involves converting an asset’s value into a digital token on a blockchain or distributed ledger. Benefits include increased liquidity, faster settlements, and accessibility. RWAs that can be tokenized include real estate, art, financial assets and intellectual property.
Management consulting firm Roland Berger estimates a $10 trillion market for tokenized assets by 2030, up from around $300 billion currently. Asset tokenization is being explored by traditional finance and crypto-native firms like JPMorgan, Goldman Sachs and Societe Generale as a key trend.
Despite crypto industry headwinds, data from VanEck Research shows the market capitalization for RWAs reached $342 billion in September. The adoption of ERC-3643 provides a standardized framework to further drive adoption of asset tokenization.
