Chintai’s RWA Foresight
After the CHEX token Dutch auction completed in the Fall of 2019, @ChintaiNetwork announced their intentions on Medium four years ago when the term Real World Assets (#RWA) did not exist, but were instead referred to as digital assets:
[MAS] Licensure approval will enable regulatory compliant trading, issuance and handling of tokenized securities…
This new issuance platform was surely conceived even earlier. The importance of Chintai’s realization of the need for regulatory compliance and quality licensure cannot be overstated. Their decision to apply with the Monetary Authority of Singapore (MAS) was equally critical. According to The Global Economy, Singapore was the highest-quality regulator in 2021, and has consistently remained a top-5 financial regulation hub.
Chintai then immediately began building their tokenization blockchain platform, dedicated to achieving two primary goals:
- Transform capital markets for asset managers, banks and enterprise through infrastructure modernization and more efficient business processes
- Democratize RWA investment access and reach a far larger investor pool compared to traditional financial markets (#TradFI)
True Foresight
Chintai recognized very early on the need for what has only recently been termed RWA. The team realized the potential of using blockchain technology to modernize traditional financial markets, the need for a gateway token ($CHEX) between #TradFI and #DeFi, the advantages of working with regulators for proper licensing, the necessity of operating compliantly throughout the business and technology stack, to even embrace automated compliance and make it a core component.
After formally registering Chintai Network Services in 2020, the team began building its blockchain platform while partnering with several institutional clients to gather real-world requirements and identify opportunities to improve issuance, trading, custody and account maintenance across all asset classes. Tremendous issuance setup cost savings (up to 70%) were identified by removing unnecessary intermediaries and automating manual processes when dealing with illiquid assets such as real estate. Moreover, the platform was also designed to equally benefit mid-sized enterprises and smaller companies to raise capital quickly and efficiently.
From the very beginning Chintai’s overarching goal has been to democratize access to RWA by solving the illiquid asset puzzle through fractionalization, expanding retail investor access to assets usually unavailable to them in traditionally restrictive private, illiquid markets. At its conception, Chintai was already fully aware how investor democratization is the driving force behind transforming financial markets through RWA mass adoption.
Eventually, three years later the Big Four consultancies finally began taking public notice. Ernst & Young published this key takeaway in May, 2023:
…technology will drive down the cost of a transaction and fractionalize illiquid assets.
Leading The RWA Pack
There is little doubt Chintai leads the RWA tokenization pack with its unique and comprehensive platform, but how big is their lead?
First, consider the effort required to secure premiere licenses to issue and trade RWA. As noted above, Chintai applied for licenses with Monetary Authority of Singapore (MAS) early in 2020. After a rigorous application, evaluation and auditing process Chintai finally secured its Capital Markets Services license to issue RWA securities on 23-August-2022: A two-and-a-half-year endeavor. Many other players both large and small failed to qualify over this time frame. Two months later Chintai received its Recognized Capital Market Operator license to trade regulated RWA on 25-October-2022. Binance failed to obtain the same license during this period. Many RWA competitors have only just begun applying for licensure in 2023.
Next, let’s consider the three-year effort required to create a convenient, compliant and comprehensive blockchain platform built entirely on-chain, capable of tokenizing and trading RWA, where the full lifecycle of any asset class can be tokenized and subsequently traded on a high-performance Automated Market Maker (AMM) exchange (think: Coinbase), with automated compliance monitoring every transaction on-chain. Moreover, business partners can also optionally stand-up their own branded portals for dynamic issuance and trading using Chintai’s extensive white label services (think: Shopify). To date, there is no other RWA platform available that can match Chintai Network.
How big is Chintai’s lead? For RWA projects just beginning their journey at this point, Chintai has a two-to-three year lead in terms of holding quality licenses to issue and trade RWA on a comprehensive and completed blockchain platform.
With true foresight Chintai is the driving force behind RWA marketplace transformation.
More About Chintai
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