Sui, OpenAssets Team Up to Develop Tokenized Asset Standard ... Strengthen Interoperability for Institutional Trading and Settlement

Sui announced a collaboration with OpenAssets to develop the Open Tokenized Asset Standard (OTAS). OpenAssets is a digital financial infrastructure company in the real-world asset tokenization sector. The partnership aims to establish a common standard for institutional tokenized asset trading, verification, and settlement across different financial systems.

Through this collaboration, the two companies plan to expand onchain financial use cases for a wide range of assets, including securities, funds, and commodities. The move comes amid a growing number of cases in which institutions are digitally issuing securities, funds, and commodities. The tokenized asset market is projected to reach USD 30 trillion in 2034.

However, many tokenized assets are currently tied to siloed systems. As a result, significant time and cost are required for customized integration for institutional transactions. This integration burden is acting as an obstacle to market expansion.

OTAS is an open-source framework designed to address these issues. Rather than requiring the use of a specific blockchain or a complete redesign of existing system architecture, the framework is built to handle the core information and procedures for tokenized assets in a common way. OTAS standardizes the way asset identification information, regulatory compliance rules, and audit trail information are represented.

OTAS was proposed by OpenAssets and is being developed as a lab project under the Linux Foundation Decentralized Trust (LFDT). Sui, which recently joined LFDT, is participating as an early contributor and sponsor of OTAS. Sui is involved from the standard design stage onward.

OpenAssets and Sui are jointly pursuing the standardization of tokenized asset information representation procedures, tokenized asset verification procedures, and tokenized asset settlement procedures. The two companies are also continuing work to test the impact on the Sui network.

Through this structure, institutions can expect to maintain their preferred technology stack while enabling asset trading, verification, and transfers across multiple networks. In addition, stakeholders can jointly develop industry-wide standards without being bound to the interests of a specific platform.

OTAS is a blockchain-agnostic standard. Sui is based on an object-centric Move architecture and offers high throughput and immediate transaction finality. Accordingly, Sui was presented as optimized for transaction execution environments in capital markets with complex and strict regulatory requirements.

Daniela Barbosa, general manager of decentralized technologies at the Linux Foundation and executive director of LFDT, said the operating foundation of financial markets is trustworthy standards. She explained that OTAS applies that principle to tokenized assets through an open framework.

She added that Sui and OpenAssets are key partners in building neutral governance for the LFDT lab. She also said Sui and OpenAssets are contributing to the development of the next-generation digital capital markets model.

Gabor Gurbacs, CEO of OpenAssets, said the prerequisite for a standard to function is nonexclusive ownership. He explained that OpenAssets is a company that co-founded the launch of OTAS. He also said OpenAssets engineers were early code contributors to the project and that all outputs were designed from the outset as community co-ownership structures.

He linked Sui's sponsorship of the LFDT lab and the implementation of the standard to the next stage of OTAS, explaining that OTAS is moving beyond the specification stage and into application in real operating environments.

Source: TECHWORLD · Lee Gwang-jae
Original: https://www.epnc.co.kr/news/articleView.html?idxno=407724

References

• https://www.epnc.co.kr/news/articleView.html?idxno=407724