Xyxyx enables a state-of-the-art tokenization infrastructure for RWAs that runs end-to-end on blockchain rails, ensuring unparalleled efficiency, security, and transparency.

By integrating the tokenization of RWAs with the tokenization of related documents, the Xyxyx Launchpad provides a end-to-end infrastructure that significantly enhances provenance, transparency, and trust. This ensures that every tokenized RWA can be traced back to its underlying documents, securely recorded on the blockchain, thereby offering a complete and reliable audit trail.

In this article, we propose a framework for issuers/originators which leverages Xyxyx’s end-to-end on-chain tokenization infrastructure through the Xyxyx Launchpad and its foundational tokenization models: 1x1 and A4

Framework

To exemplify the framework, we will simulate the tokenization of a real estate property.

Step 1: Tokenizing critical documents via A4

• Through the A4 model, the issuer/originator tokenizes all pertinent documents, including the Contract Terms or any other critical document involved in the tokenization.

• The issuer/originator retains these A4-based tokenized documents, which have a total supply of 1.

Step 2: Tokenizing the RWA via 1x1

• Following the deployment of the A4-based document, the issuer/originator proceeds to tokenize the RWA in question using the 1x1 model — aiming to create a highly composable, fractional, tradable digital asset that can be easily integrated into any ERC-20 or ERC-721 based application.

Step 3: Integrating 1x1 and A4

• The on-chain composability between A4 and 1x1 is established through the metadata of the 1x1-based token.

• The issuer/originator must include the Contract Terms’ address in the 1x1 token output.

Example

670 Cambridge Ave, Menlo Park, CA 94025

Year built: 2024
Lot: 7,356 sqft
Parcel number: 071413260
Zoning: R20000
____________________________________________

Position: 1%, No of Shares: 100, Decimals: 1
____________________________________________

Contract Terms:
0x26E550AC11B26f78A04487d5F20f24E3559e7Dd9

Advancements

Enhanced Provenance

By tokenizing all documents involved in the RWA tokenization process, the Xyxyx framework provides a robust provenance trail, ensuring that every component of the tokenization is verifiable and transparent.

Increased Trust and Security

The end-to-end on-chain tokenization ensures that all components of the RWA tokenization are securely recorded on the blockchain, enhancing trust among investors and stakeholders.

Simplified Auditing and Compliance

The tokenized documents serve as immutable records that can be easily audited and verified, simplifying compliance with regulatory requirements and enhancing the credibility of tokenized non-fungible RWAs.

Versatility and Adaptability

The Xyxyx framework can be adapted to various non-fungible RWAs beyond real estate, such as artworks and rare items. This versatility makes the Xyxyx Launchpad a powerful tool for broadening the scope of tokenized RWAs.

Empowering Institutional Adoption

By providing a transparent and reliable framework, Xyxyx bridges the gap between DeFi and traditional financial institutions, aligning with regulatory and compliance requirements.

Annotations

• In simple terms, the 1x1 model embodies the financial instrument of the tokenization framework, while the A4 model comprises the critical documents that validate, provide provenance, and ensure the auditability of the “collateral” of such 1x1-based financial instruments.

• Conceptually, the A4-based documents are to 1x1-based tokenized RWAs what Proof of Reserve attestations are to CEXes — both provide provenance and auditability.

• To fully grasp this article, it is recommended to understand the intricacies of the 1x1 and A4 models.

Conclusion

Xyxyx Launchpad's end-to-end on-chain infrastructure for RWA tokenization represents a significant advancement in the realm of blockchain-based financial instruments.

By integrating the tokenization of documents with the tokenization of RWAs, Xyxyx ensures that every tokenized asset is backed by verifiable, on-chain records. Xyxyx’s holistic approach not only enhances provenance and trust but also sets a new benchmark for transparency and efficiency in the tokenization of RWAs.