How Is Ink Finance Empowering RWA

Ink Finance
4 min readMay 18, 2023

Ink Finance, an on-demand Web3 financial SaaS, places Real-World Assets (RWA) in its core financial functionalities, recognizing them as a fundamental credit-based component in Decentralized Finance (DeFi) and an increasingly important asset class.

Ink Finance, from the outset, embodies a central objective: to tokenize RWAs with complete transparency and off-chain clearing ability. To accomplish this, we developed the InkEnvelope construct, specifically engineered to convert any asset into a token format. Subsequent technical development focused on the supporting elements such as credit, clearing mechanism, and accountability into the RWA governance system.

INK has successfully deployed this novel feature on several EVM-compatible testnets, marking a significant step towards an integrated and versatile credit-focused DeFi infrastructure.

Ink Finance, a pioneering Web3 Financial Software as a Service (SaaS), has always been at the forefront of adopting Real-World Assets (RWA) to advance Decentralized Finance (DeFi). The tokenization of RWAs — assets in the tangible real world — has been gaining prominence since the beginning of blockchain technology, and Ink Finance has dedicated extensive research to building and standardizing this process.

Significant developments in the DeFi space have recently brought RWAs into the spotlight. Announcements like Binance becoming a node operator for Polymesh, a layer 1 blockchain designed specifically for regulated assets such as security tokens, and Maple Finance launching a US treasury bond pool underscore the escalating importance of RWAs. These assets, which include real estate, art, bonds, and private equity, are now seen as the next growth engine for DeFi.

Ink Finance’s core design objective from its inception was to enable the transparent and efficient tokenization of RWAs. This commitment is evident in our proprietary INK Envelope technology, which transforms any asset into a token format, a feature successfully deployed across Ethereum Virtual Machine (EVM)-compatible testnets.

A central part of INK’s vision is to advance blockchain technology to serve the real-world economy and society at large, by introducing credit-based DeFi. The goal is to create a resilient financial system on Web3, capable of withstanding market challenges and serving all Web3 projects and decentralized organizations.

A key attribute of Ink Finance is its ability to establish on-chain competence and financial credit, thereby lowering the entry barrier to Web3. Ink Finance helps establish

  1. On-chain competence and financial credit.
  2. Lowers the threshold of entering Web3.
  3. Links Web2, real-world, and Web3.
  4. Connects projects and users.

As Web3’s financial infrastructure, INK allows users to create on-chain organization structures with ease, establish their treasuries, and adopt workflows to execute critical financial decisions on-chain.

Moreover, it provides the facilities to issue aggregate investment fund products and bespoke financing products. introduce and wrap assets that are unavailable to the local blockchains. Although the functions are comprehensive, the “plug and play” configuration method does not require users to adopt all of them; they only choose the useful modules according to their own missions.

InkEnvelope supports flexible customization, enabling enforced processes of transparent governance to wrap any assets into tokens.

InkEnvelope, the backbone of Ink Finance’s RWA tokenization, is purpose-built to cater to equity/rights asset class, such as real estate and arts, as well as the fixed-income asset class, including invoices, receivables, consumer credits, and debt claims, etc.

InkEnvelope simplifies the complexity of heterogeneous assets, with a unified asset description, a realistic & tangible clearing method, and a brand-new programmable layer to seamlessly connect to the world of DeFi applications.

The InkEnvelope is formed and issued through the following steps:

  1. Wrap critical asset information into an InkEnvelope, such as insurance, guarantee, valuation auditing, licensing, disposal rights, physical or cross-chain clearing authorities.
  2. Encode details of the entire asset introduction and approval process into InkEnvelope, including the proposal and approval rules.
  3. Publish the packaged assets on Ink Finance platform, through any organized fund management entity, or any entity seeking financing.
  4. Investors make investments to the RWA through these entities, or through any established DeFi protocols that adopt the InkEnvelope assets.
  5. Investors claim distributions and redeem investment returns.

In the aforementioned entities, Risk managers, auditors, administrators, and investment managers, all elected through decentralized voting, will manage the process of asset packaging, asset issuance, and asset transactions. All managers must be held to certain standards determined by the community, including pledging substantial governance tokens, being verified for legal identities or professional licenses, or both.

Ink Finance is committed to RWAs with an unwavering determination

The goal is to foster a more inclusive and sustainable financial paradigm. We are laser-focused on equipping investors and borrowers with a convenient, uniformed, and secure environment primed for efficient and prudent liquidity. The platform’s innovative underwriting and risk management methodologies are dedicated to security, transparency, and prudent investments.

Riding on the irreversible trend of using digitalization and decentralization to empower real economy, Ink Finance emerges as a pioneering leader in RWA tokenization. By injecting a vibrant blend of innovation and deep insight of credit based finance into the market, we aim to cultivate an environment where diverse and secure assets, as well as abundant financing opportunities thrive. We continuously dedicate massive efforts to promoting the digitalization of RWAs and building a more inclusive and sustainable financial system.

“Build on-chain Competence & Financial Credit.” The digitalization of RWA is one concrete realization of Ink Finance’s slogan.

About Ink Finance

Ink Finance is an on-demand financial management SaaS, enabling on-chain organizations to build effective operation structure and perform best-practice financial management. Motto: Finance is built on credit, and credit comes from competence.

Learn more about Ink Finance and what we’re building:

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