“Luxembourg stands out as a top global hub for asset tokenisation, thanks to its clear regulatory framework established by the market regulator, the Luxembourg Financial Sector Supervisory Commission (CSSF),” Dennis O’Connell, the president of the ERC3643 Association told Delano. Photo: Tokeny

“Luxembourg stands out as a top global hub for asset tokenisation, thanks to its clear regulatory framework established by the market regulator, the Luxembourg Financial Sector Supervisory Commission (CSSF),” Dennis O’Connell, the president of the ERC3643 Association told Delano. Photo: Tokeny

The Luxembourg-based non-profit ERC3643 Association, with 78 members, achieved a perfect 10/10 security score and engaged with six major regulatory bodies to advance the standardisation of real-world asset tokenisation, stated the outfit in a press release.

The non-profit ERC3643 Association its leadership in standardising the real world asset (RWA) tokenisation sector last week, following its first general assembly. The association’s primary objective was to eliminate industry silos and establish an interoperable future for on-chain finance through the ERC-3643 standard, officially designated for RWA tokenisation.

Since its establishment, the ERC3643 Association expanded its membership to 78 organisations across financial services, legal firms, Web3 developers and tokenisation platforms. This rapid growth reflected an increasing recognition of ERC-3643 as the preferred standard for on-chain asset tokenisation and the expanding ecosystem suggested further developments in the future.

The ERC-3643 protocol, a framework for creating, managing and trading tokenised versions of physical assets, such as real estate, commodities or financial instruments on the Ethereum blockchain, achieved several key milestones in its inaugural year. It received official validation as an Ethereum request for comments (ERC) standard and obtained a perfect security score of 10/10 in an industry-leading audit. Members of the association launched more than 15 initiatives, which included the ERC-3643 tracker, front-end software development kits (SDKs), documentation, legal opinions for specific jurisdictions, decentralised applications (Dapps) and various decentralised finance (Defi) projects. Additionally, seven on-chain factories were deployed across major blockchains, contributing to the accelerated adoption of the protocol within the ecosystem.

The association engaged with six major regulatory bodies: the Financial Sector Supervisory Commission (CSSF) in Luxembourg, Bafin in Germany, the Dubai Financial Services Authority (DFSA), the Financial Services Regulatory Authority (FSRA) in Abu Dhabi, the Monetary Authority of Singapore (MAS) and the United States Securities and Exchange Commission (SEC). Through these discussions, the association demonstrated the protocol’s capacity to enforce compliance and facilitate controls that align with existing regulatory requirements.

Dennis O’Connell, the president of the ERC3643 association, told Delano that Luxembourg stands out as a top global hub for asset tokenisation, thanks to its clear regulatory framework from the CSSF. He added, “ERC-3643 enables compliance enforcement into every tokenisation process, giving institutions the confidence to operate on-chain. With key players like Apex Group, Tokeny and CMS driving a fully developed ecosystem, projects can move from concept to market in just weeks. This is a powerful advantage for any institution looking to tokenise financial instruments to gain market share in this new on-chain era.”

The ERC3643 Association, through its collaborative efforts, aims to promote the adoption of the ERC-3643 standard, which is viewed as a crucial pathway to unlocking the full potential of tokenisation and paving the way for a new era in global asset management, according to the association’s press release.

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