A coalition of web 3 companies has introduced a new Ethereum token standard designed to rationalize compliance and reduce the fragmentation of the growing sector of real assets (RWA).
According to an announcement sent to Cointtelegraph, the standard, ERC-7943, creates a minimum modular interface designed to operate on Ethereum Layer-2 and Ethereum Virtual Machine (EVM), while remaining agnostic for implementation and infrastructure specific to sellers. This means that it can work in any configuration and is not locked in the tools of a specific company.
Dario Lo Buglio, the co-founder of Brickken and the author of the Ethereum improvement proposal (EIP) -7943, told Cintelegraph that the new standard acts as a “universal layer” which is above all types of token. This allows developers and institutions to avoid having to use personalized packaging and bridges while incorporating tokenized assets into applications.
ERC-7943 is supported by a coalition of web 3 and Fintech companies, notably Bit2me, Brickken, Complelio, Dekalabs, Dishishares, Hacken, Fortocol, Fulltokenzed, Realestate.exchange, Stobox and Zoth.
Respond to a “perfect storm” of institutional interest
According to Lo Buglio, EIP-7943 is a direct response to the frustration of developers and to a “perfect storm of institutional interest”.
Rwa Rwa.xyz tracker data show that the total value of Rwas Onchain in Tokenized has reached $ 28.44 billion, up almost 6% in the last 30 days. Meanwhile, the total value of the stables of stablescoins and total asset holders are up almost 7% and 9%, respectively.
Rwas’s growth shows that institutions are currently adopting RWA on a large scale, competing issuers for market share. Lo Buglio said it highlights the need for a new token standard that meets the needs of developers and financial institutions.
“Financial institutions want programmable controls that correspond to their compliance executives. The developers, on the other hand, are blocked by rewriting personalized logic for each RWA token,” said Lo Buglio “We needed a common foundation.”
Lo Buglio told Cintelegraph that the standard entered the EIP process examination and had already received comments from compliance professionals and other standard token authors.
“The EIP is always on the stage of the review, where the main comment will be offered and incorporated.”
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Fight against fragmentation and allow composibility
Previous efforts to normalize Rwa token on Ethereum include ERC-1400 and ERC-3643. ERC-1400 has introduced a hybrid model mixing fungible and non-buttocks (NFTS), with integrated compliance tools.
The ERC-3643 has focused on regulated assets such as securities, the integration of ONCHAIN and authorization of identity layers to apply your customer (KYC) and anti-flask (AML) requirements.
Lo Buglio said that the ERC-1400 aims to focus on the separation of the logic of storage and said that the ERC-3643 is solid for the titles, but it is closely coupled with its own identity and its authorization battery. Unlike these solutions, he said, it differentiates itself by being a minimum and agnostic interface.
“EIP -7943 only defines what must exist – not the way it is built – so that any project or protocol can place it in their friction”, told Lo Buglio to Cointelegraph.
“Its main objective is to solve the problem of the fragmentation of the industry by providing a single set of standardized functions for compliance.”
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