Creed - An Introduction
The financial industry is undergoing a major transformation, thanks to the rapid advancements in blockchain technology. This evolution is paving the way for groundbreaking solutions that bridge the gap between Web2 and Web3, with one of the most exciting developments being the tokenization of Real World Assets (RWAs). Tokenizing RWAs is revolutionizing how we view and handle tangible assets in our increasingly digital world, merging the realms of traditional finance (TradFi) and decentralized finance (DeFi).
Real World Assets (RWAs) represent tangible items such as real estate, commodities, and securities that can be digitized and traded on blockchain networks. The concept of RWAs holds immense promise, as it enables fractional ownership, increases liquidity, and broadens access to investment opportunities. However, the tokenization of RWAs also presents numerous challenges. The strict regulatory standards for handling such assets necessitate a robust, secure, and compliant blockchain infrastructure.
History and present of Tokenization
To date, there have been numerous digital representations of real-world assets, many predating blockchain technology. Among the most recognizable forms of tokenized assets are Real Estate Investment Trusts (REITs) for real estate and Exchange-Traded Funds (ETFs) for commodities. These financial instruments effectively digitize these asset classes, transforming them into highly investable segments of the economy.
Prior to blockchain, tokenization was almost exclusively associated with financial instruments. The success of ETFs and REITs demonstrated that digitizing transaction mediums could significantly improve liquidity and access. However, without distributed computing and standardized consensus, tokenization relied on third-party database management, limiting its applicability. This changed with the advent of decentralized blockchains in the early 2010s.
Smart contracts, first conceived by computer scientist Nick Szabo in 1994, became widely accessible with Ethereum’s launch in 2015. These self-executing agreements, written in code, allow for the verification, transfer, and management of asset ownership without intermediaries. This automation began to reduce frictions in traditional asset management and laid the groundwork for the tokenization of real-world assets.
Between 2016 and 2019, interest in real-world asset (RWA) tokenization grew, with projects like MakerDAO exploring this area. Companies like Broadridge facilitated over $1 trillion worth of tokenized repurchase agreements monthly on its Distributed Ledger Repo (DLR) platform, indicating the scale of adoption. SWIFT conducted experiments demonstrating that its infrastructure could facilitate the transfer of tokenized value across multiple blockchains, highlighting the potential for private blockchains to streamline operations. Private blockchains became dominant over public blockchains in tokenization as they offer more control, faster transactions, and enhanced scalability, making them attractive for businesses and organizations. Private blockchains like Hyperledger Fabric and Corda were in demand, offering a more controlled environment for tokenization initiatives. They provide a closed network where only specific participants have access, ensuring greater security and privacy compared to public blockchains. Efforts in the tokenization industry on private blockchains during this period focused on creating and managing tokens within closed networks, addressing limitations in tokenization opportunities, and exploring governance challenges.
In 2018, ERC-1400 tokens pioneered regulatory-compliant securitization by standardizing methods for issuing, transferring, and managing tokens within a decentralized network. However, the concept of tokenized real-world assets did not gain significant traction in the crypto world until recently. In 2020 due to covid, this sector took a backseat and since 2021, there has been a significant surge in the tokenization industry, with major players showing heightened interest and commitment in tokenization on public blockchains. Recently, Ondo's OUSG fund, now fully backed by BUIDL, has tokenized BlackRock's U.S. T-bills fund on Ethereum. Additionally, Franklin Templeton has tokenized its U.S. Government Money Fund, represented by the $BENJI token, on Polygon and Stellar, holding the largest market share at 33.6% or $360.2 million in assets. Other public blockchains, such as Avalanche, Gnosis, and Base, are also used by some tokenized Treasury funds, though they maintain smaller market shares.
Notably, BlackRock, the world's largest asset manager, made a foray into the RWA tokenization space. Their introduction of BUIDL, a tokenized fund launched on the Ethereum network, offered investors stable value and daily accrued dividends, solidifying the industry's credibility. Moreover, the endorsement of RWA tokenization by industry giants like Anchorage Digital Bank NA, BitGo, Coinbase, and Fireblocks further legitimized the sector. Major financial institutions such as JP Morgan, HSBC, Bank of America, and investment funds like Invesco and Franklin Templeton began actively discussing and investing in RWA tokenized assets across various domains including bonds, commodities, and real estate.
Market Growth
Presently, in 2024, the landscape of tokenized real-world assets is evolving rapidly, with early milestones and innovations laying the groundwork for large-scale adoption. These advancements continue to drive regulatory evolution and technological refinement, fostering a conducive environment for ongoing innovations and diversified use cases. The overall tokenization industry is experiencing exponential growth, with the total market capitalization surpassing $8.4 billion. Notably, USD-pegged assets dominate the landscape of fiat-backed stablecoins, comprising 99% of all stablecoins, while commodity-backed tokens, with gold as the frontrunner, have reached a market capitalization of $2 billion. Tokenized treasury products experienced a staggering 782% growth in 2023, amounting to over $931 million. As of August 2024, the market value of tokenized real-world assets on public chain, encompassing bonds, private credit, and real estate, stood at $6 billion.
Looking ahead, the tokenization market is poised to maintain its growth trajectory, with expected asset tokenization of $16 Trillion by 2030, as per the estimates of Boston Consultancy Group (BCG). Factors such as the increasing occurrence of financial fraud and the rising demand for secure payment gateways are expected to fuel this growth. Tokenization offers numerous advantages, including enhanced liquidity, expedited settlement times, reduced costs, and enhanced risk management. As blockchain technology continues to evolve, tokenization is anticipated to play an increasingly pivotal role in revolutionizing traditional asset ownership and trading.
However, despite the promising prospects, the current state of real-world asset tokenization confronts significant challenges primarily stemming from the predominance of private blockchain platforms. While private blockchains offer certain benefits, they often lack the robust security and composable liquidity provided by public blockchains. Being inherently centralized and reliant on a select group of validators, private blockchains are susceptible to security vulnerabilities. Additionally, tokenized assets on private blockchains suffer from interoperability issues, existing in isolated silos that hinder the creation of composable liquidity pools. Moreover, the current blockchain landscape falls short of being permissionless, secure, and decentralized, all of which are imperative for successful RWA tokenization. With an anticipated influx of multi-billion investment and capital in Real World Assets (RWAs) and considerable interest from major industry players, such as BlackRock and JP Morgan, selecting the right infrastructure becomes paramount. The inadequacies of current private blockchain solutions underscore the pressing need for a more advanced alternative — a technology solution that brings the benefits of public blockchain’s security layer to the institutional requirement of compliance, privacy, data protection and better user experience. This is precisely where Creed steps in to address these challenges by creating a layer 3 chain that will abstract away the complexities of tokenization in a compliant fashion with the security of Ethereum chain.
Creed Chain
Creed is a Layer 3 blockchain network engineered to bridge TradFi liquidity to Web3 creating a robust institutional RWA DeFi network.
A modular chain, built on base ecosystem, Creed is building a compliant, privacy focused chain that channels institutional liquidity to tokenized real world assets, RWA DeFi protocols, and liquidity pools thus optimizing tokenized asset utilization and enabling composable liquidity.
Merging Ethereum's strong security features with tailored functionalities to address Real World Assets (RWA) needs, Creed creates a transparent and regulation-compliant environment. This is achieved through the use of RWA Precompiles, Onchain Compliance and Transaction Privacy using technologies such as FHE and Zero-Knowledge Proofs thereby safeguarding privacy while ensuring compliance with regulatory requirements in both real and crypto world.
Creed combines Ethereum's robust security with customized features to meet Institutional RWA DeFi requirements. Unlike permissioned chains that compromise on security and decentralization, Creed provides a transparent, regulation-compliant environment, ensuring privacy through Account Abstraction and Zero-Knowledge Proofs. By enabling interoperability with traditional financial systems and prioritizing compliance, Creed serves as a gateway for institutional adoption of tokenization and cryptocurrency through Real World Assets (RWA).
As a compliant RWA Layer 3 chain, creed enables seamless interactions between Web3 and traditional financial systems and ensures that both institutional investors and everyday users can operate within a secure and legally compliant environment seamlessly. We are developing Creed to move asset tokenization from private blockchains to a secure, seamless, and permissionless Ethereum environment, enhancing blockchain capabilities with functionalities tailored to specific use cases and user needs.
Creed Chain is a game-changer for startups in the Real World Assets (RWA) tokenization space, providing them with a robust and versatile platform to build and scale their offerings. By facilitating cross-chain interoperability, Creed enables seamless interactions between assets tokenized on its platform and other public blockchains, DeFi protocols, and liquidity pools. This interoperability not only expands the reach and accessibility of these assets but also ensures composable liquidity, allowing startups to optimize their asset management strategies and enhance market access for a broader range of investors. Moreover, Creed's positioning as a Layer 3 chain on a Base chain, combining Ethereum's robust security with tailored features to meet RWA requirements, offers startups a secure and transparent environment for their tokenization activities. This, in turn, builds trust among investors and stakeholders, crucial for the successful growth of startups in the RWA space.
Creed's flexibility in offering both self-custodial and custodial solutions caters to a diverse set of users, making it more accessible and user-friendly for startups. The gasless transactions facilitated by Creed also streamline adoption and usage, reducing barriers to entry and enhancing the overall user experience. By enabling startups to tokenize real-world assets efficiently and compliantly, Creed acts as a gateway for institutional adoption of tokenization and cryptocurrency through RWAs, opening up new avenues for startups to attract institutional investors and fostering a more inclusive and comprehensive financial ecosystem
Key Features of Creed Chain
Regulatory Compliance
Creed prioritizes adherence to legal standards, which is crucial for institutional investors and users navigating financial regulations. This compliance mitigates legal risks, ensuring that all transactions and interactions meet necessary legal requirements.
Efficient Transaction Processing
To optimize efficiency, Creed leverages Layer 2 solutions. This approach reduces the gas fees typically associated with Layer 1 blockchains, making transactions faster and more cost-effective.
Zero Knowledge Proof Technology
Security and privacy are paramount in blockchain interactions. The privacy of transactions, especially in institutional settings, is a critical aspect that intertwines with data protection measures to ensure the confidentiality, integrity, and security of sensitive information. Where financial data and transactions are paramount, robust data protection practices play a pivotal role in safeguarding the privacy of transactions. Creed utilizes Zero Knowledge Proof technology to protect sensitive information related to RWAs. This ensures that transactions remain secure and private without compromising on transparency.
Simplified Blockchain Interactions
Creed simplifies blockchain usage through account abstraction features, making it accessible to mainstream users. This innovation abstracts the complexities of blockchain accounts, facilitating easier adoption and interaction.
Flexible Custody Options
Understanding that users have different preferences for asset control, Creed offers a range of custody options. Whether users prefer self-custodial solutions or trust custodial services, Creed provides the necessary flexibility.
Creed is a Layer 3 chain built on the BASE network, which offers and facilitates seamless communication and value transfer between different blockchains and distributed ledger technologies. Such interoperability is essential for Real World Assets (RWAs), as it allows tokenized assets to move smoothly across multiple platforms and ecosystems.
Layer 3 — Our Choice of Architecture
Layer 3 solutions like Creed are considered ideal for building platforms that handle Real World Assets (RWA) due to several compelling reasons.
Firstly, Layer 3 chains operate on top of existing Layer 1 and Layer 2 networks, leveraging the security and decentralization of Layer 1, like Ethereum, while also providing the flexibility to introduce features and optimizations specific to the application’s needs.
For RWA, this means that Layer 3 platforms can offer customized solutions that are tailored to the unique requirements of tokenizing and managing real-world assets. This includes the ability to handle complex compliance regulations, provide enhanced privacy through advanced cryptographic techniques like Zero-Knowledge Proofs, and offer a more user-friendly experience with features like Account Abstraction
Moreover, Layer 3 solutions can facilitate seamless interoperability with other blockchains and traditional financial systems. This is crucial for RWAs as it allows for the easy transfer and management of assets across different environments, making them more liquid and accessible to a wider range of investors
Additionally, Layer 3 platforms can significantly reduce transaction costs and improve transaction speeds, which are essential factors for startups and institutions dealing with RWAs. By minimizing fees and ensuring efficient processing, Layer 3 chains like Creed make it more feasible for businesses to adopt blockchain technology for their operations
Security of Ethereum
Ethereum, functioning as a public blockchain, embodies key principles of decentralization, transparency, and the facilitation of decentralized applications (dApps). Its inclusive nature welcomes participation from anyone interested, empowering individuals to validate transactions and uphold a synchronized copy of the blockchain. This decentralized framework not only fosters openness but also holds the potential for significant scalability improvements.
In stark contrast, private blockchains operate within confined parameters, restricted to specific participant groups necessitating permissions or invitations for access. Primarily utilized within organizational settings for internal operations, private blockchains prioritize heightened privacy and control. However, their inherent limitations expose them to greater susceptibilities such as security breaches and data manipulation, presenting easier targets for malicious actors to disrupt the network. Moreover, the default privacy assurance in private blockchains remains ambiguous, with a clear distinction between permissioned networks and private transaction managers.
The increasing demand for tokenized assets underscores the imperative need for a secure and dependable platform to safeguard the integrity and credibility of digital assets. Ethereum's established security infrastructure positions it as a superior alternative to private blockchains, which have demonstrated vulnerabilities ranging from security breaches to transparency deficits and sluggish response times due to their centralized nature and limited security protocols. As Real-World Assets (RWAs) strive for widespread acceptance and trust, harnessing the robust security features inherent in public blockchains like Ethereum becomes paramount. Ethereum's adoption of the Proof of Stake (PoS) consensus mechanism further bolsters its security profile, solidifying its status as a dependable foundation for Layer 3 solutions such as Creed.
Lindy Effect of Ethereum
Ethereum stands out with a formidable network effect, showcasing unparalleled adoption and utilization, particularly within the decentralized finance (DeFi) realm. As of 2024, Ethereum commands a commanding lead, securing 72% of DeFi's total value locked (TVL) and hosting 56% of stablecoins on-chain. This supremacy primarily stems from Ethereum's robust smart contract execution capabilities. Although Bitcoin does support smart contracts, they pale in comparison to Ethereum's in terms of flexibility and comprehensiveness, empowering developers to craft intricate decentralized applications (dApps) and intricate financial services.
Addressing Ethereum's scalability and cost challenges at Layer 1, emerging Layer 2 solutions have efficaciously boosted transaction throughput and slashed fees. Consequently, Ethereum emerges as a more enticing option for institutional builders compared to alternative Layer 1 networks. Its unwavering security and extensively tested infrastructure confer it an advantage over the majority of Layer 1 altcoins, resonating with institutional builders' priority for a secure and dependable blockchain. The diverse assortment of DeFi protocols thriving on Ethereum, ranging from lending platforms to decentralized exchanges and yield farming ventures, fosters a dynamic ecosystem ripe for innovation and collaboration among institutional builders.
With over a decade of existence, Ethereum has navigated through adversities, undergone upgrades, and tackled scalability hurdles, reaffirming its sustainability. Its governance frameworks, consensus mechanisms, and network security ecosystem render it an alluring option for institutions. Furthermore, its smart contract prowess, myriad applications, and developer-friendly ambiance position it as the preferred blockchain for institutional endeavors. The discernment of Ethereum's value by institutions solidifies its standing as a compelling choice in the blockchain arena.
Use Case Specific Layer 3 Solutions
Creed, as a Layer 3 solution, operates on top of Layer 2 solutions, catering to specific use cases such as blockchain gaming, DeFi, and dApps. This tailored approach allows for higher transaction throughput and faster processing speeds, enhancing user experience and platform performance.
Regulation Compliance- Ensuring legal assurance for users and developers
Regulation compliance is crucial in real-world asset (RWA) tokenization to ensure that all transactions adhere to legal standards and frameworks. This provides legal assurance for both users and developers, fostering trust and confidence in the platform. By complying with regulatory requirements, Creed Chain mitigates legal risks, promotes transparency, and enhances its credibility with institutional investors and regulatory bodies.
Account Abstraction - Simplifying blockchain interactions for mainstream adoption
Account abstraction simplifies the interaction between users and the blockchain, making it more accessible to a broader audience. This feature abstracts away complex blockchain processes, allowing users to engage with the platform without needing in-depth technical knowledge. For RWA tokenized assets, this simplification is essential for attracting mainstream users and facilitating wider adoption, as it lowers the barrier to entry and enhances the overall user experience.
Privacy of Transactions and Wallets- Protects sensitive transaction details and wallet identities
Privacy is a paramount concern in financial transactions, especially when dealing with RWAs. Creed Chain’s emphasis on transaction and wallet privacy ensures that sensitive details remain confidential. This protection is vital for maintaining the anonymity of users and securing proprietary financial information, thereby preventing unauthorized access and potential fraud. Enhanced privacy measures build user trust and encourage participation in the tokenized asset ecosystem.
Zero Knowledge Proof- Enhancing privacy and security without revealing underlying data
Zero knowledge proof (ZKP) technology allows transactions to be verified without disclosing the underlying data. This significantly enhances privacy and security on the Creed Chain. In the context of RWA tokenization, ZKPs enable secure and private transactions, ensuring that asset ownership and transaction details are protected. This technology is crucial for maintaining confidentiality while still ensuring the integrity and validity of transactions.
Self-Custodial and Custodial Solutions- Offers flexible custody options to suit diverse user needs
Creed Chain provides both self-custodial and custodial solutions, catering to the diverse needs of its users. Self-custodial solutions empower users with full control over their assets, enhancing security and personal responsibility. Custodial solutions, on the other hand, offer a managed approach where a trusted third party holds and secures assets. This flexibility is essential in RWA tokenization, as it accommodates varying levels of user expertise and preferences for asset management.
Gasless Transactions- Eliminates transaction fees, encouraging more frequent platform use
Gasless transactions remove the need for users to pay transaction fees, making the platform more accessible and encouraging more frequent use. This feature is particularly important in the RWA space, where high transaction fees can be a barrier to adoption. By eliminating these fees, Creed Chain lowers the cost of participation, promoting a more active and engaged user base. This not only enhances user experience but also increases the liquidity and efficiency of the tokenized asset market.
The tokenization of RWAs is not just about technological advancements; it's also about creating a framework that is compliant with regulatory standards and attractive to institutional investors. Creed serves as a gateway for institutional adoption of tokenization and cryptocurrency through RWAs. By providing a secure, scalable, and regulation-compliant infrastructure, Creed is paving the way for major financial institutions to participate in the digital asset economy.
Creed Ecosystem
Creed, operating as a Layer 3 blockchain integrated with the BASE network, endeavors to forge a seamless connection between Web3 and traditional finance (TradFi) realms within a secure and legally compliant framework. Its primary objective lies in facilitating the efficient tokenization of physical assets such as real estate, art, and commodities, thereby enabling fractional ownership and frictionless asset transfer across the blockchain. This groundbreaking approach empowers traders and investors to engage in global token trading, substantially mitigating the friction and delays typically associated with traditional commodity markets.
Moreover, Creed extends its support to decentralized applications (DApps), furnishing a secure and scalable platform for their operations. Leveraging smart contracts, Creed facilitates decentralized lending, borrowing, yield farming, and automated market-making (AMM) protocols, effectively eliminating the need for intermediaries and enhancing accessibility to DeFi services.
Distinguishing itself with a Layer 3 architecture, Creed provides developers with a versatile infrastructure to craft Decentralized Private Information Network (DePIN) solutions. These networks bolster privacy, facilitate secure data sharing, and enable encrypted communication within the ecosystem. Creed also accommodates money market protocols, empowering users to lend, borrow, earn interest on digital assets, and maintain stablecoin pegs, all while upholding transparency, security, and efficient capital allocation. Additionally, it streamlines the tokenization of properties, enabling investors to acquire fractional ownership in real estate assets, thereby lowering barriers to entry. Smart contracts are entrusted with tasks such as rent collection, property management, and the maintenance of transparent ownership records.
By leveraging existing Layer 2 solutions like the BASE network, Creed crafts a highly adaptable Layer 3 framework. It capitalizes on the security features of the BASE network while affording developers the flexibility to tailor their applications to suit specific requirements. This approach facilitates seamless interaction with other blockchains, ensuring fluid cross-chain transactions and data sharing. With its capacity for high throughput, Creed emerges as a well-suited platform for managing a substantial volume of transactions spanning diverse use cases.
Creed Roadmap
We are thrilled to announce the launch of our Testnet in June 2024. This is a prime opportunity for developers and early adopters to explore the platform’s functionalities, contribute to its improvement, and build pioneering applications that leverage our advanced blockchain technology. We are excited to invite forward-thinking startups and esteemed institutions to join us in shaping the future of finance and technology on the Creed Chain
Creed is a cutting-edge Layer 3 blockchain built on the secure and scalable BASE network. Our mission is to create a seamless bridge between Web3 and traditional finance (TradFi) within a compliant and robust environment. By enabling the efficient tokenization of physical assets and offering a platform for decentralized applications (Dapps), Creed is poised to revolutionize how we interact with financial and digital assets.
Why Build on Creed?
Launching Real World Assets (RWAs) on the blockchain can be a lengthy process, often taking anywhere from 6 months to 3 years due to regulatory compliance and technical hurdles.
The RWA market is notably scattered, with liquidity thinly distributed and a subpar user experience for both developers and end-users. Despite these challenges, the RWA sector presents a significant opportunity within the web3 space, yet it lacks a centralized platform
Creed emerges as the Layer 3 platform designed for the crypto-savvy community, aiming to become the go-to platform for RWA tokenization. It streamlines the complexity of bringing RWAs onto the blockchain by offering a comprehensive tokenization toolkit. This toolkit facilitates the entire process, from establishing legal entities to managing custody and wallets, as well as simplifying paperwork, on/off-ramp processes, deployment, and a one-time Know Your Customer (KYC)/Anti-Money Laundering (AML) procedure.
By enabling the issuance of RWA products on Creed, investors can retain their capital within the blockchain ecosystem, earning returns on assets that are not correlated with the market, thereby reducing portfolio volatility and broadening asset diversification.
Building a community around RWA protocols can be challenging, as the products may appear conventional. However, Creed adopts a crypto-native strategy to overcome this, positioning itself as a hub for these projects. By integrating with Layer 3, projects can effortlessly connect to a broader ecosystem.
Innovative Infrastructure: Leverage Creed’s customizable Layer 3 architecture to develop and deploy advanced blockchain solutions.
Tokenization Capabilities: Easily tokenize physical assets such as real estate, art, and commodities, enabling fractional ownership and global trading.
DeFi Opportunities: Utilize our secure smart contracts to create decentralized lending, borrowing, yield farming, and automated market-making (AMM) protocols.
Cross-Chain Interoperability: Benefit from seamless cross-chain transactions and data sharing, ensuring high throughput and robust performance.
Supportive Ecosystem: Join a vibrant community of developers, innovators, and industry leaders, and gain access to resources, documentation, and support.
Get Involved
We invite startups and institutions to:
Develop and Test: Be among the first to develop and test your applications on our Testnet.
Collaborate: Partner with us to explore innovative use cases and enhance the Creed ecosystem.
Grow Together: Participate in our community events, hackathons, and workshops to learn, share, and grow together.
Creed is not just a blockchain platform; it's a gateway to a new era of decentralized finance and asset management. Together, we can push the boundaries of what’s possible and drive the next wave of technological and financial innovation.
Join us on this exciting journey. Let’s build the future on Creed.
