Gala Wen on Tokenization of Real-World Assets: Here’s How BNB Chain Paves the Way
Gala Wen, Director of Ecosystem Development at BNB Chain.
BNB Chain supports smart contracts, decentralized finance (DeFi) protocols, non-fungible token (NFT) marketplaces, and Web3 decentralized applications (DApps). It is a community made up of independent users, developers, validators, and delegators who direct the development of BNB and BNB Chain.
Its Ethereum Virtual Machine (EVM) compatibility enables developers to deploy dApps seamlessly within its ecosystem. The platform focuses on community engagement, high performance, scalability, low transaction fees, and fast transactions, with tokenization solutions as a key priority.
In an interview with Gala Wen, Director of Ecosystem Development at BNB Chain, she stated that “we can expect to see increased adoption of tokenized assets across various sectors, leading to a more inclusive and efficient transaction and ownership system.”
In 2019, Forbes China recognized Gala Wen as one of its “30 Under 30” honorees. Wen entered the Web3 space in 2022 after establishing a successful finance, marketing, and venture investment career. She has significantly contributed to major blockchain projects such as STEPN and Eigen Layer.
During this interview, Wen shared her insights, discussing the importance of tokenization as a solution, its challenges, future blockchain innovations, and upcoming plans for the platform.
Tokenization: A Revolutionary Solution
Can tokenization truly democratize finance? Gala Wen believes it can—and she explains how.
“The tokenization of real-world assets has the potential to reshape the global financial landscape by increasing liquidity, transparency, and accessibility,” she said. Gala recognizes that there are challenges regarding tokenization. However, for her, the benefits are significant.
- Easier trading: Tokenization allows faster and simpler trading of real-world assets than traditional methods.
- Shared ownership allows you to break down expensive assets like real estate, art, or commodities into smaller digital shares, making ownership more accessible.
- Greater access: Lower costs open global markets to more investors who previously could not participate, democratizing access.
- Shared value: Tokenization enables shared ownership of high-value items like artwork, allowing people to benefit from increasing value.
- Better price discovery: Increased market activity helps set prices more accurately and efficiently.
However, Wen is also aware of the main challenges associated with tokenization. She emphasizes two of them:
- Asset custody: Keeping the physical assets safe and well-managed is key to building trust with investors.
- Regulatory compliance: Different regions or jurisdictions have specific rules for securities and asset management, and it is essential to follow them when creating or trading digital tokens.
“As the technology matures and regulations evolve, we can expect to see increased adoption of tokenized assets across various sectors, leading to a more inclusive and efficient transaction and ownership system,” Wen states.
“Navigating this complex landscape requires collaboration between technology providers and regulatory bodies to establish clear guidelines that protect investors while fostering innovation in financial markets,” she asserts.
Ensuring Interoperability and Seamless Integration Across Blockchains
Wen stated that achieving interoperability in the tokenized asset landscape starts with these essential elements:
- A one-stop solution: A standardized tokenization framework simplifies processes for users.
- Cross-chain bridges and decentralized exchanges (DEXs): Built-in mechanisms enable smooth asset transfers between blockchains and enable trading on DEXs.
- Comprehensive ecosystem support: Developer tools, educational resources, and industry collaboration drive adoption and innovation.
She emphasized simplifying the user experience and fostering innovation through integrated platforms. “For real-world assets to be effectively tokenized and transferred across various blockchains, a standardized token framework and blockchain interoperability protocol are imperative to ensure seamless integration and compatibility among diverse ecosystems,” she said.
Wen provided specific examples, such as the ERC3643 protocol developed by Tokeny, which acts as a standard for turning real-world assets (RWAs) into digital tokens. “Its integrated decentralized identity framework, ONCHAINID, ensures that only users who satisfy predefined criteria can become token holders,” she pointed out.
“Moreover, Chainlink’s Cross-Chain Interoperability Protocol (CCIP) enhances the accessibility of tokenized RWAs across multiple blockchain platforms”, she said.
She emphasized that “an established mechanism for asset custody verification is vital; autonomous, reliable, and timely verifications empower users, asset issuers, and on-chain applications to monitor cross-chain or off-chain reserves supporting the tokenized RWAs while preventing multiple collateralization of assets.”
BNB Chain’s Plans To Expand the Reach and Adoption of Tokenized Assets
Wen shared several steps BNB Chain is taking to empower small businesses and drive the adoption of tokenized assets:
- One-stop RWA tokenization: A simple, user-friendly solution that allows businesses to tokenize real-world assets without needing advanced blockchain knowledge.
- Comprehensive platform: BNB Chain supports tokenizing companies and real-world assets, making it easier for businesses to create tokens, engage their community, and manage digital assets.
- Compliance-focused approach: BNB Chain aims to build trust and attract investors to its ecosystem by prioritizing regulatory compliance.
- Efficiency-driven tools: The platform reduces administrative costs, maximizes investment returns, provides accessible resources, and fosters strategic partnerships to support businesses.
Wen’s Vision for the Future of Blockchain Innovation
Wen shared her thoughts on blockchain’s future, stating, “while the future is inherently uncertain, it’s likely that in 5-10 years, blockchain will revolutionize how we exchange value.”
She highlighted key drivers behind this transformation, including continuous technological advancements improving scalability and security, growing institutional interest, evolving regulations fostering innovation, and the demand for efficiency and transparency in value exchange networks.
Expressing her optimism, Wen concluded that “these factors combined suggest a future where DeFi automates processes, tokenization unlocks liquidity, and blockchain-based solutions enhance security, efficiency, and access to value exchange, ultimately leading to a more inclusive and robust system.”
