Tokenization: A Key Step in Financial Evolution

Real world assets ( RWA ) are becoming an important part of the cryptocurrency industry. According to data platforms, as of May 2024, the RWA market size has exceeded 6.6 billion dollars, and it is expected that by 2030, the scale of asset tokenization will reach 10 trillion dollars.

Many financial institutions are actively laying out plans in this field. A certain trading platform uses tokenization technology to tokenize money market fund shares. The custodian trust and clearing company (DTCC) recently completed a pilot test of fund tokenization technology and standards. Several banks, including Deutsche Bank, have joined the blockchain alliance led by the Monetary Authority of Singapore to explore interoperable tokenized fund blockchain platforms.

Among many related projects, IX Swap stands out with its unique approach. IX Swap is a RWA tokenization launch platform and decentralized exchange that facilitates security token trading through licensed custodians and brokers, aiming to democratize private market investment opportunities and address the liquidity challenges in the tokenization industry.

The co-founder of IX Swap reflected on the state of the cryptocurrency market in 2017: at that time, most altcoins lacked market maker support and liquidity. Today, as more assets undergo tokenization, the RWA sector faces similar liquidity challenges. IX Swap aims to become the "Uniswap" of the security token space, allowing RWA holders to legally create liquidity pools to facilitate the trading of tokenized assets.

The main products offered by IX Swap include:

1. Secondary trading products: Allow trading of security tokens ( STOs ) and fractionalized NFTs ( F-NFTs ), providing access to private equity, real estate, and other RWAs.

2. Launch Platform: A crowdfunding platform that offers investment opportunities for startups.

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

4. IXS Token: The native token of IX Swap, used to incentivize ecosystem growth, fee discounts, and more.

IX Swap achieves partial ownership through asset tokenization and simplifies the issuance and trading process via decentralized exchanges. However, due to legal regulations, RWA and NFTs that represent partial ownership are classified as securities and must comply with relevant regulations. Therefore, IX Swap cannot be fully decentralized like Uniswap, but instead bridges the gap between traditional finance and the decentralized world.

The IX Swap team began developing an automated market maker for the securities token industry in 2017, and the platform officially launched in September 2021. Recently, IX Swap was acquired by the parent company of the leading licensed tokenization platform in Singapore, InvestaX, to enhance its ability to address liquidity issues in the industry.

IX Swap has completed multiple rounds of financing, including IDO, IEO, and private placements, and has established several strategic partnerships to promote innovation in the RWA market. In the competitive landscape, IX Swap occupies a unique position in the industry with its unique AMM model and support for retail investors through its securities licenses.

Although IX Swap demonstrates great potential, investors should still be aware of the volatility risks that may arise from its relatively small market capitalization, as well as challenges such as the constantly changing regulatory environment and intense industry competition.