Zerocap CEO Ryan McCall recently announced that the firms in the Australian Securities Exchange (ASX) ecosystem can now tokenize any digital asset. He said this after they successfully launched a new proof of concept bridge, the Synfini protocol.
Synfini Protocol Enables Bond, Funds, and Equity Tokenization
According to news reports, Zerocap, a digital asset investment firm, revealed the successful trial of the Synfini program on Monday. Synfini is a protocol built and launched in November to enable the trading of tokenized assets based on Ethereum.
It also enables users to host data and create blockchain apps on ASX’s distributed ledger technology (DLT). Ryan McCall revealed that many institutional investors showed interest in the Synfini protocol during its launch.
Most significantly, firms have issues trading tokenized funds, equities, carbon credits, and bonds. The CEO added that such companies sought ways to offer tokenized assets to enable them to cut costs, issue faster, and have a more comprehensive range of investments.
McCall stated that companies in the ASX ecosystem could offer crypto trading through the Synfini protocol. However, he said many firms still focus on tokenized real-world assets and have yet to show interest in the development.
He pointed out that Synfini is entirely different from the upcoming CHESS system based on the ASX ecosystem. The CEO hinted that Zerocap would officially start offering asset tokenization and trading activities to customers through Synfini. He said the firm has the necessary legal backing to offer it soon.
Trading On Digital Assets On ASX Can Reduce Counterparty Risk Fear
McCall noted that digital trading assets on a reputable platform like ASX would encourage institutions to invest in the cryptocurrency sector.
Many institutions are skeptical about investing in crypto firms because of the prevalent counterparty risk.
Also, many firms went bankrupt, like Celsius, due to the high level of liquidation in the crypto industry this year. Consequently, many institutional investors desert the sector for the time being; however, ASX seeks to solve the issue.
McCall suggested that the ASX is an ideal platform to launch digital asset trading as it offers investors protection. He continued that many investment firms would utilize the Synfini protocol as it is user-friendly and improves its services.
In addition, he stated that any exchange, app developer, or hedge fund could create a blockchain app on the Synfini protocol. Interestingly, he added that the protocol would provide builders with all the necessary infrastructure to build and manage their apps.
Furthermore, Zerocap participated in the tokenized carbon credit trade that occurred in June between BetaCarbon and Victor Smorgon Group. Zerocap reportedly offered liquidity and marketing services to the two parties in the transaction.