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Polygon Joins Forces with Bank of Italy for Exploring Tokenized Assets – MATIC Poised for Massive Growth
July 29, 2023
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  • Bank of Italy picks the DeFi project with Polygon Labs and Fireblocks. Aims to help financial institutions explore security tokens on DeFi in a secure manner.
  • Cetif Advisory leads the platform development with Polygon Labs, Fireblocks, Reply, Linklaters, and DVRS. Aiming to involve Italian banks, including Intesa Sanpaolo.

The innovation center of the Bank of Italy has selected a decentralized finance (DeFi) initiative that involves the collaboration of Polygon Labs, a developer specializing in scaling the Ethereum network, and Fireblocks, a crypto infrastructure provider. 

The primary objective of this project is to assist financial institutions in exploring security tokens and conducting transactions using DeFi protocols in a secure and compliant manner. Italy is embracing the growing trend of tokenizing real-world assets within the cryptocurrency ecosystem, and it aims to bridge the gap between traditional finance and DeFi through its collaborations with Polygon Labs and Fireblocks.

Known as the Milano Hub, this establishment operates as the central bank’s hub for fostering innovative concepts in finance. For six months, the Milano Hub will actively support the development of an Institutional DeFi for the Security Token ecosystem. The ultimate goal of this platform is to enable traditional financial institutions to safely and compliantly experiment with security tokens and conduct transactions using DeFi protocols.

The project emerges amidst the efforts of central banks worldwide to develop central bank digital currencies (CBDCs) and investigate methods to integrate blockchain technology into the current payment infrastructure. Simultaneously, tokenization has gained significant popularity in the cryptocurrency space, with traditional financial institutions and digital asset companies tokenizing conventional assets like bonds and equities on blockchain platforms.

According to a report from Bank of America, tokenization has the potential to revolutionize value transfer, settlement, and storage across all industries. By facilitating faster transactions, reducing expenses, and establishing a more streamlined financial infrastructure, tokenization could bring about significant transformative changes.

Collaboration with Industry Leaders: Key Players and Participants

Cetif Advisory, a consulting firm associated with the Università Cattolica del Sacro Cuore of Milan’s Cetif Research Centre, will lead in developing the platform. They will coordinate the efforts of several organizations, including Polygon Labs, Fireblocks, tech developer Reply, legal and tax consultant Linklaters, and web3 studio DVRS.

The project aims to involve various Italian banks, asset managers, and financial institutions, as mentioned in the press release. This includes Intesa Sanpaolo, the country’s largest banking group, managing more than $1 trillion (975 million EUR) in total assets.

Imanuel Baharier, the general manager of Cetif Advisory, emphasized the importance of establishing a secure and regulated operating environment for supervised entities within the DeFi ecosystem.

Tokenized securities are an expanding frontier in the realm of blockchain technology. According to Citi Global Perspectives & Solutions, the market for tokenized securities has the potential to reach a remarkable value of $4 trillion to $5 trillion by 2030. Private equity and venture capital sectors lead this growth, closely followed by the real estate industry.

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New Human Force
Join this Now! YOU have what it takes!

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The Great Onboarding: US Government Anchors Global Economy into Web3 via Pyth Network

For years, the crypto world speculated that the next major cycle would be driven by institutional adoption, with Wall Street finally legitimizing Bitcoin through vehicles like ETFs. While that prediction has indeed materialized, a recent development signifies a far more profound integration of Web3 into the global economic fabric, moving beyond mere financial products to the very infrastructure of data itself. The U.S. government has taken a monumental step, cementing Web3's role as a foundational layer for modern data distribution. This door, once opened, is poised to remain so indefinitely.

The U.S. Department of Commerce has officially partnered with leading blockchain oracle providers, Pyth Network and Chainlink, to distribute critical official economic data directly on-chain. This initiative marks a historic shift, bringing immutable, transparent, and auditable data from the federal government itself onto decentralized networks. This is not just a technological upgrade; it's a strategic move to enhance data accuracy, transparency, and accessibility for a global audience.

Specifically, Pyth Network has been selected to publish Gross Domestic Product (GDP) data, starting with quarterly releases going back five years, with plans to expand to a broader range of economic datasets. Chainlink, the other key partner, will provide data feeds from the Bureau of Economic Analysis (BEA), including Real Gross Domestic Product (GDP) and the Personal Consumption Expenditures (PCE) Price Index. This crucial economic information will be made available across a multitude of blockchain networks, including major ecosystems like Ethereum, Avalanche, Base, Bitcoin, Solana, Tron, Stellar, Arbitrum One, Polygon PoS, and Optimism.

This development is closer to science fiction than traditional finance. The same oracle network, Pyth, that secures data for over 350 decentralized applications (dApps) across more than 50 blockchains, processing over $2.5 trillion in total trading volume through its oracles, is now the system of record for the United States' core economic indicators. Pyth's extensive infrastructure, spanning over 107 blockchains and supporting more than 600 applications, positions it as a trusted source for on-chain data. This is not about speculative assets; it's about leveraging proven, robust technology for critical public services.

The significance of this collaboration cannot be overstated. By bringing official statistics on-chain, the U.S. government is embracing cryptographic verifiability and immutable publication, setting a new precedent for how governments interact with decentralized technology. This initiative aligns with broader transparency goals and is supported by Secretary of Commerce Howard Lutnick, positioning the U.S. as a world leader in finance and blockchain innovation. The decision by a federal entity to trust decentralized oracles with sensitive economic data underscores the growing institutional confidence in these networks.

This is the cycle of the great onboarding. The distinction between "Web2" and "Web3" is rapidly becoming obsolete. When government data, institutional flows, and grassroots builders all operate on the same decentralized rails, we are simply talking about the internet—a new iteration, yes, but the internet nonetheless: an immutable internet where data is not only published but also verified and distributed in real-time.

Pyth Network stands as tangible proof that this technology serves a vital purpose. It demonstrates that the industry has moved beyond abstract "crypto tech" to offering solutions that address real-world needs and are now actively sought after and understood by traditional entities. Most importantly, it proves that Web3 is no longer seeking permission; it has received the highest validation a system can receive—the trust of governments and markets alike.

This is not merely a fleeting trend; it's a crowning moment in global adoption. The U.S. government has just validated what many in the Web3 space have been building towards for years: that Web3 is not a sideshow, but a foundational layer for the future. The current cycle will be remembered as the moment the world definitively crossed this threshold, marking the last great opportunity to truly say, "we were early."

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US Dept of Commerce to publish GDP data on blockchain

On Tuesday during a televised White House cabinet meeting, Commerce Secretary Howard Lutnick announced the intention to publish GDP statistics on blockchains. Today Chainlink and Pyth said they were selected as the decentralized oracles to distribute the data.

Lutnick said, “The Department of Commerce is going to start issuing its statistics on the blockchain because you are the crypto President. And we are going to put out GDP on the blockchain, so people can use the blockchain for data distribution. And then we’re going to make that available to the entire government. So, all of you can do it. We’re just ironing out all the details.”

The data includes Real GDP and the PCE Price Index, which reflects changes in the prices of domestic consumer goods and services. The statistics are released monthly and quarterly. The biggest initial use will likely be by on-chain prediction markets. But as more data comes online, such as broader inflation data or interest rates from the Federal Reserve, it could be used to automate various financial instruments. Apart from using the data in smart contracts, sources of tamperproof data 👉will become increasingly important for generative AI.

While it would be possible to procure the data from third parties, it is always ideal to get it from the source to ensure its accuracy. Getting data directly from government sources makes it tamperproof, provided the original data feed has not been manipulated before it reaches the oracle.

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