- The Stellar Development Foundation participated in the ERC-3643 Association to promote a standardized framework for beneficial compliance tokenization for PI networks.
- The ERC-3643 integration is intended to enable tokens allowed in embedded compliance logic.
By participating in the ERC-3643 Association, the Stellar Development Foundation (SDF) has taken a major step towards expanding its role in compliant blockchain finance. For context, the ERC-3643 Association is a body focused on a standardized framework for regulated digital assets. Currently, PI networks are still in the spotlight after this development.
Stellar will be participating in the ERC-3643 Association
ERC-3643, proposed by blockchain company Tokeny, specifies a standard on how to create “permitted tokens,” i.e., how to create tokens that have been built in such a way that compliance logic restricts transactions to designated and verified operators.
It is configured to comply with strict regulatory requirements in a variety of jurisdictions, including those imposed by the Securities and Exchange Commission.
Here, SDF wants to upgrade the tokenization infrastructure of real world assets (RWAS) of stellar networks by participating as a member. The initiative aims to attract asset issuers, institutional investors and blockchain developers to support compliant token standards for the stellar ecosystem.
Another focus area the foundation has is improving interoperability between the stars and Ethereum, allowing allowed tokens built on a chain to easily transfer assets to another chain. Furthermore, cross-chaining capabilities could bring regulated, tokenized equipment to a larger audience on a global basis.
“Open standards, compliance mechanisms and interoperability are important to expand the use of tokenized real-world assets.” I said Tomer Weller, Chief Product Officer of SDF.
Meanwhile, ERC-3643 Association President Dennis O. Connell described the addition of the star as an important advance. He emphasized that the network’s ultra-high transaction speeds are paired with existing compliance systems that regulators are already familiar with.
Possible suggestions for PI networks
PI networks based on StellAR’s core technology may be in a position to take advantage of these new feature sets. Blockchain Analyst Dr. Altcoin I explained it The SDF action could have allowed the PI to implement RWA tokenization. This is what PI co-founder Nicolas Kokkalis proposed in a previous conversation when discussing the future of the project.
Within this model it is theoretically possible to issue it via PI tokenized stocks/property rights/other assets. They would have automatically enforced restrictions to ensure that only qualified members of the market were permitted to do such transactions. This type of setup is consistent with regulations around the world, allowing you to implement the benefits of participating in cross-border blockchain transactions.
This is the next upgrade that the stellar team is planning to launch in the near future following developments to Protocol 23, which is intended to bring about decentralisation and increased compatibility with distributed applications (DAPP). For PI networks, it becomes the implementation of the PI AI App Studio project in a more powerful and authorized environment.
Collectively, STELLAR’s ERC-3643 compatibility and an impending code upgrade of protocols allow PI networks to actively engage in chained financial markets in a compliant chain. It also helps to expand the foothold of the blockchain economy.
