• The Chainlink Labs Government Affairs team believes the United States has what it takes to lead the tokenization revolution.
  • To make that happen, the U.S. needs to fully embrace blockchain technology and tokenization to capture a significant share of the financial market.

Tokenization is the process of converting real-world assets (such as property, stocks, art, or even gold) or digital rights into blockchain-based tokens that can be owned, traded, or transferred. Tokenization is quickly becoming one of the biggest revolutions in finance, with some estimates projecting that the tokenized asset market could hit $16 trillion by 2030.

Recognizing this potential, Chainlink Labs’ Government Affairs team recently published a report exploring how the U.S. financial system can grow its global influence by embracing blockchain and tokenization.

The report stated that, “the United States is uniquely positioned to lead, thanks to its deep capital markets, top-tier global financial institutions, and history of innovation in financial infrastructure.”

The team identified several hurdles that the U.S. could face in adopting real-world asset tokenization. Despite the fact that over 99% of the $210 billion stablecoin market is tied to the U.S. dollar, many of the platforms behind these stablecoins are actually based outside the U.S. So, while the dollar dominates in name, much of the infrastructure operates offshore.

And stablecoins are just the beginning, similar to how email was the first big use case of the internet, stablecoins are the early entry point for blockchain assets.

Now, decentralized finance (DeFi) is pushing things even further, offering a global, neutral financial layer that goes beyond just sending digital dollars. But with this evolution comes a significant challenge: compliance. For tokenized assets to scale, compliance must be automated and integrated into the assets themselves.

How Does the US Achieve This?

Countries such as Singapore, Switzerland, and the UAE are already leading the way in the tokenization space. The U.S. still has a strong chance to lead, but only if it acts with clarity, confidence, and coordination. To stay competitive, the U.S. must offer tokenized financial products that are not only reliable but also easy to buy, settle, and track in real time.

One key piece of the puzzle is the use of identity oracles. These oracles bring trust to the system by providing on-chain proof of important user information, like KYC/AML verification , investor status, and geographic eligibility. But that’s just part of the solution.

The bigger breakthrough lies in creating a unified golden record, a smart data container that holds everything from ownership details to compliance requirements and pricing information. It’s continuously updated, easy to verify, and visible to regulators and market participants in real time. This kind of transparency is exactly what’s needed for large-scale tokenization to work.

And when it comes to making this vision a reality, Chainlink stands out. According to a 2024 report, it’s currently the only platform that supports all the capabilities required for these unified records.

Rather than locking everything onto a single blockchain, Chainlink’s Cross-Chain Interoperability Protocol (CCIP) ensures that tokenized assets and their data can move freely and securely between multiple blockchains, addressing one of the biggest challenges in blockchain adoption today.

Chainlink’s CCIP is already securing more than $18 trillion in on-chain value, which is nearly as much as the entire U.S. GDP. And Chainlink is not only building tech but also backing the U.S.

As Crypto News Flash recently reported , Chainlink has teamed up with the Blockchain Association to launch the “Tokenized in America” initiative, which shines a spotlight on how all 50 states are engaging with blockchain and asset tokenization.

Recommended for you: