Sunday, January 29, 2023

Under the Wing of ConsenSys Capital, Token Foundry Launches

Under the Wing of ConsenSys Capital, Token Foundry Launches

Ethereum-centric venture production studio ConsenSys just revealed its new Token Foundry service. Under the purview of ConsenSys Capital, the Token Foundry will help clients “launch well-designed utility tokens.”

Also see: Cipher Browser Is Joining Coinbase, Will Be Merged Into Toshi

Join the Bitsonline Telegram channel to get the latest Bitcoin, cryptocurrency, and tech news updates:

Toward a New Token Economy

On April 12th, Token Foundry was officially launched, the latest piece in ConsenSys Capital’s “constellation of financial service offerings for digital assets.”

Per ConsenSys, the new organization, with founder Harrison Hines at the helm, will be aimed at helping token plays reach elite quality:

“Token Foundry helps blockchain projects architect sound protocols and launch well-designed utility tokens safely and transparently. The Token Foundry team uses its expertise in cryptoeconomics, game theory, and distributed systems to advise projects and create best practices for the new token economy.”

ConsenSys founder and Ethereum co-creator Joseph Lubin hailed Token Foundry as “raising the bar on token design.”

The motivation, of course, is facilitating the impending wave of tokenization. Harrison Hines noted in the Foundry’s introductory blog post:

“At the heart of this movement is tokenization. Tokens are the catalyst for reimagining both legacy constructs and new, previously unbuildable systems. They have the potential to enable coordination and value-creation worldwide in fundamentally new ways that are more fair, secure, and evenly distributed.”

On ‘Consumer Tokens’

Later in the introductory post, founder Hines detailed out the two kinds of tokens the Token Foundry will be focused on: consumer tokens and security tokens.

Hines defined consumer tokens accordingly:

“Among the best use cases for tokenization are what we call ‘consumer tokens,’ which are tokens designed for ‘use’ or ‘consumption’ within a defined network. These tokens can resemble, among other things, memberships, licenses, collectibles, and rewards points. But most importantly, they can power the adoption and usage of new decentralized networks.”

“The main goal of Token Foundry is to identify the consumers who will add the most value to each token-powered network, and to lower the barriers of entry to participate in them,” Hines added.

On Security Tokens

The Foundry founder also touched upon security tokens, noting that such projects will have a “profound impact” on financial markets the world over:

“Tokenizing securities, financial instruments, and assets will have their own profound impact on the world, especially financial markets. Security and asset-backed tokens will a) increase access to capital and investment opportunities; b) unlock enormous pools of liquidity; c) create liquidity for previously illiquid assets; d) improve settlement times by orders of magnitude; and e) lower the cost of transactions.”

With that said, it’ll be interesting to see how the Token Foundry coordinates with regulators in the United States in particular to guarantee that their forthcoming clients’ security tokens are legally compliant. Definitely an interesting thread to watch out for in the coming months.

What’s your take? Is ConsenSys powering the Ethereum ecosystem toward the mainstream? Sound off in the comments below. 

Images via Token Foundry, Brimmer-Turan

Bitsonline Email Newsletter