Tokenizing Assets via Real Blockchain — Enhancing Liquidity and Compliance for a Mid-Sized...

Tokenizing Assets via Real Blockchain — Enhancing Liquidity and Compliance for a Mid-Sized Commercial Bank

Overview

A mid-sized commercial bank will tokenize $500 million in real-world assets (RWAs), specifically commercial real estate loans, using the Real blockchain. This institutional-grade Layer 1 blockchain will enable the bank to address challenges of illiquidity, high intermediary costs, and regulatory compliance, transforming illiquid assets into fractionalized, tradable digital tokens. The Real blockchain's unique methodology will ensure unmatched security and compliance, with custodial accounts and smart contracts designed to prevent unauthorized access, even by the asset issuer.

Challenges

—Illiquidity:Traditional RWAs like commercial real estate loans are difficult to trade, locking up capital.—High Costs:Intermediary-heavy processes inflate operational expenses.—Slow Settlement:Asset transfers often take weeks, hindering liquidity.—Compliance and Security:Ensuring regulatory adherence and protecting assets from unauthorized claims pose significant challenges.

Solution:Tokenization on the Real Blockchain

The bank will partner with the Real blockchain, leveraging its trustless ecosystem and industry-leading security methodology to tokenize its assets.

The process, facilitated by a specialized tokenization platform and a custodial institution, will follow these steps:1. Deposit the Asset:The bank will deposit $500 million in commercial real estate loans into a custodial account at a partner like Wiener PrivatBank, held in the bank's name as the tokenized asset issuer. The custodial account will be locked with tailor-made security protocols, ensuring that even the issuer cannot access the assets until all predefined rules in the smart contract are validated.

2. Tokenization Process:The bank will collaborate with its tokenization partner (e.g., Brickken) to digitize and tokenize the assets, ensuring compliance with all legal and regulatory frameworks.

3. Minting the Token:The tokenization platform will mint representative tokens on the Real blockchain, embedding technical and regulatory requirements into a tailor-made smart contract.

These requirements will include:o Smart contracts that enforce strict rules to prevent unauthorized claims, ensuring the asset remains locked until maturity, burning, or a validated claim.o Integrated KYB/KYC processes for investor verification.o On-chain risk scoring and insurance backed by Real's Disaster Recovery Fund.

4. Trading the Token:Once minted, the tokenized assets will be fractionalized, enabling trading on the Real blockchain. This will allow global investors to purchase and trade fractional ownership, which is projected to unlock over $100 million in new capital for the bank.

5. Claiming the Underlying Asset:Token holders seeking to liquidate or claim ownership of the underlying real estate loans will initiate the process through the bank (the issuer), only after all smart contract conditions are met.

6. Unlocking the Asset:Upon a validated claim, the bank will coordinate with the custodial institution to verify that the representative token has been returned to the smart contract or burned. Only then will the custodial account be unlocked, ensuring the asset remains secure throughout the process. The Real blockchain's unique API integration will provide direct access to custodial account details and asset value, streamlining this process with unparalleled transparency.

7. Transfer or Liquidation:The bank will then manage the transfer or liquidation of the underlying asset to the new owner, handling all responsibilities under its name.

Why Real Blockchain Stands Out

The Real blockchain is not just an infrastructure provider; it offers the safest methodology for asset tokenization.

Its key differentiators include:

— Locked Custodial Accounts:Assets in custodial accounts will be secured with tailor-made smart contracts, preventing access — even by the issuer — until all rules (e.g., maturity, token burning, or validated claims) are met.

— API Integration:Only the Real blockchain provides direct API access to custodial accounts, enabling real-time visibility into account status and asset value.

— Robust Security:Backed by Real's Disaster Recovery Fund and trustless ecosystem, the platform ensures compliance and protection against unauthorized actions.

— Tailor-Made Smart Contracts:The minting process will integrate customizable rules, ensuring assets remain secure until all conditions are validated.

Anticipated Outcomes— Enhanced Liquidity:Fractional ownership will enable trading and is projected to attract over $100 million in new capital. Settlement times will drop from weeks to minutes.— Cost Reduction:Automation is expected to reduce intermediary costs by up to 40%.— Compliance:Off-chain asset verification by licensed validators and on-chain risk scoring will ensure full regulatory adherence.— Global Access:Tokenization will open investment opportunities to a worldwide pool of investors.— Unmatched Security:The Real blockchain's locked custodial accounts and API-driven transparency will provide a secure, compliant framework for asset tokenization.

Conclusion

By leveraging the Real blockchain's infrastructure and partnering with a specialized tokenization platform and a custodial institution, the bank will transform $500 million in illiquid commercial real estate loans into dynamic, compliant digital assets. The Real blockchain's unique combination of locked custodial accounts, tailor-made smart contracts, and API integration will ensure the highest levels of security and transparency, unlocking new revenue streams and positioning the bank as a leader in innovative financial solutions.