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Stellar’s ERC-3643 Partnership Could Open Regulated Asset Trading for Pi Network

crypto-news-flash.com

2 hour ago

Stellar’s ERC-3643 Partnership Could Open Regulated Asset Trading for Pi Network

Stellar Development Foundation has joined the ERC-3643 Association to promote standardized frameworks for compliant tokenization, which could be beneficial to Pi Network. The integration of ERC-3643 aims to enable permissioned tokens with embedded compliance logic, meeting global regulatory requirements and attracting institutional investors. The Stellar Development Foundation (SDF) has taken a major step toward expanding its role in compliant blockchain finance by joining the ERC-3643 Association. For context, the ERC-3643 Association is a body focused on standardized frameworks for regulated digital assets. Now, Pi Network is also in the spotlight after this development. Stellar Joins ERC-3643 Association ERC-3643, proposed by blockchain company Tokeny, specifies a standard on how to create “permissioned tokens,” i.e., tokens in which a compliance logic is embedded to limit the transactions to specified and verified operator(s). It is structured in such a way that it can comply with tough regulatory requirements in various jurisdictions, such as those imposed by the U.S. Securities and Exchange Commission. Here, SDF wants to upgrade the infrastructure of tokenization of real-world assets (RWAs) in the Stellar network by joining as a member. The initiative is intended to draw asset issuers, institutional investors, and blockchain developers to support compliant token standards in the Stellar ecosystem. The other area of focus that the foundation has is improved interoperability with Stellar and Ethereum so that the permissioned tokens built on the chain can easily transfer the assets to another chain. Further, the cross-chain functionality is likely to bring regulated tokenized instruments to a wider audience on a global basis. “Open standards and compliance mechanisms, combined with interoperability, are critical for scaling the use of tokenized real-world assets,” said Tomer Weller, Chief Product Officer at SDF. Whilst, ERC-3643 Association President Dennis O Connell described the addition of Stellar as an important advancement. He highlighted that the network’s ultra-high transaction speeds are now paired with an existing compliance system that regulators are already familiar with. Possible Suggestions On Pi Network Pi Network, founded on the core technology of Stellar, could be in a position to take advantage of these new sets of capabilities. Blockchain analyst Dr. Altcoin explained that the SDF action had the potential to enable Pi to implement RWA tokenization, something that Pi co-founder Nicolas Kokkalis proposed when discussing the future of the project in previous conversations. Within this model, it would be theoretically possible to issue through Pi tokenized shares/property rights/other assets. It would have automatically enforced restrictions to ensure that only qualified members of the market would be allowed to trade such. This type of setup would remain consistent with the regulations across the world and be able to implement the advantages of entering into cross-border blockchain trade. It follows the development into Protocol 23, the next upgrade that the Stellar team plans to launch in the near future, and that is intended to bring increased decentralization and compatibility with decentralized applications (dApps). In the case of Pi Network, that would be the implementation of the Pi AI App Studio projects in a stronger and permissionless environment. Collectively, the ERC-3643 compatibility of Stellar and the impending code upgrade of the protocol may allow Pi Network to actively engage in the compliant and cross-chain financial markets. It could also aid in expanding a foothold in the blockchain economy.

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