Pi Network is poised to leverage Stellar’s ERC-3643 Association membership, enabling compliant tokenized asset trading for real-world assets.
Pi Network could play a significant role in the market expansion for tokenized assets. Stellar, which has lately joined the ERC-3643, is involved in this development. This allows networks like Pi to engage in regulated and borderless asset markets.
Stellar’s ERC-3643 Partnership Establishes the Scene
The Stellar Development Foundation (SDF) has declared its membership in the ERC-3643 Association. This could introduce tokenization of RWAs to the Pi Network ecosystem due to its robust foundation in Stellar’s ecosystem.
ERC-3643, a blockchain system for “permissioned tokens,” was developed by Tokeny. These are digital assets that are pre-programmed to ensure compliance. These regulations guarantee that only verified and approved participants can acquire, maintain, or trade these assets, adhering to stringent global regulations.
The SDF’s objective is to enhance the tokenization of real-world assets (RWAs) on the Stellar network by becoming a member of the ERC-3643 Association. The primary aim is to promote using RWAs by collaborating with asset issuers, institutions, and blockchain developers to incorporate compliant tokenized assets into Stellar’s ecosystem.
Furthermore, the SDF aims to facilitate cross-chain interoperability between Ethereum and Stellar. This will reduce the seamless transfer of compliant tokenized assets between various blockchain networks, thereby increasing the accessibility of regulated tokenized markets globally.
“Joining the ERC3643 Association reflects our belief that open standards, strong compliance frameworks, and interoperability are essential to scaling tokenized real-world assets,” said Tomer Weller, CPO of the Stellar Development Foundation
According to Association President Dennis O’Connell, Stellar’s participation is a “significant milestone” in coordinating Stellar transactions with a compliance framework that regulators, such as the U.S. Securities and Exchange Commission, have already acknowledged.
Why This Is Important for the Pi Network
This initiative toward compliant RWA tokenization could directly impact Pi Network, which is constructed on Stellar Core. Dr. Altcoin, a renowned authority in the Pi Network, emphasized that this development paves the way for Pi to support tokenized real-world assets. Additionally, he stated that Nicolas Kokkalis, the co-founder of Pi, had hinted at this possibility years ago.
Pi could employ the ERC-3643 framework on Stellar to issue tokenized shares, guaranteeing that only verified investors could trade them. This could enable the regulated global trading of tokenized property, equities, or other assets without barriers.
This announcement follows Stellar’s forthcoming Protocol 23 release, which has the potential to enhance the Pi Network. One significant advantage of this would be the ability of Pi Network to execute dApps from its Pi AI App Studio on a completely decentralized framework. This could enhance the Pi ecosystem, affecting the Pi Coin’s long-term value.
Stellar’s ERC-3643 partnership and the forthcoming Protocol 23 could benefit Pi Network. The initiative has the potential to evolve into a regulated, globally connected network that supports real-world financial markets if Pi’s developers adopt these capabilities.