Pi Network may soon play an important role in the growing market for tokenized assets. This development is related to Stellar, which recently joined the ERC-3643 token. This provides networks like Pi the opportunity to participate in regulated, borderless asset markets.
Stellar's collaboration with ERC-3643 lays the foundation
The Stellar Development Foundation (SDF) announced its membership in the ERC-3643 Association. Given its solid foundation in the Stellar ecosystem, this could introduce the tokenization of RWA into the Pi Network ecosystem.
ERC-3643, created by Tokeny, is a blockchain system for "permissioned tokens." These digital assets have built-in compliance rules. These rules ensure that only verified and approved participants can purchase, hold, or trade these assets, thereby complying with strict global regulations.
By joining the ERC-3643 Association, SDF aims to improve the tokenization of real-world assets (RWA) on the Stellar network. Its main goal is to integrate compliant tokenized assets into the Stellar ecosystem by collaborating with asset issuers, institutions, and blockchain developers, thereby encouraging the use of RWA.
In addition, SDF hopes to achieve cross-chain interoperability between Stellar and Ethereum. This would allow compliant tokenized assets to be easily transferred between different blockchain networks, making it easier for regulated tokenized markets to access globally.
Tomer Weller, Chief Product Officer of the Stellar Development Foundation, stated: "Joining the ERC3643 Association reflects our belief: open standards, a strong compliance framework, and interoperability are crucial for scaling the tokenization of real-world assets."
Association Chairman Dennis O'Connell described Stellar's participation as an "important milestone," combining fast and efficient Stellar transactions with a compliance framework already recognized by regulators, including the U.S. Securities and Exchange Commission.
Why this is important for the Pi Network
The Pi Network, built on Stellar Core, can directly benefit from this initiative to promote compliant RWA tokenization. Pi Network expert Dr. Altcoin noted that this advancement paves the way for Pi to support tokenized real-world assets. He also mentioned that Pi co-founder Nicolas Kokkalis hinted at this possibility years ago.
Pi can issue tokenized stocks using the ERC-3643 framework on Stellar, ensuring that only vetted investors can trade. This way, its ecosystem can facilitate global trading of tokenized real estate, stocks, or other assets while achieving seamless regulation.
This news comes after the upcoming release of Protocol 23 for Stellar, which may upgrade the Pi Network. One major advantage of the upgrade is that the Pi Network can run dApps on a completely decentralized framework through its Pi AI App Studio. This could enhance the Pi ecosystem and potentially impact the long-term value of Pi coins.
The Stellar ERC-3643 partnership and the upcoming Protocol 23 may be good news for the Pi Network. If Pi's developers can fully leverage these features, the project is expected to evolve into a regulated, globally interconnected network powering the financial markets of the real world.
