Chainlink’s LINK Is ‘Safest Bet’ to Profit From RWA Tokenization Trend: K33 Research

Chainlink has positioned itself as a key piece of infrastructure to connect blockchains with the outside world and should profit from crypto’s real-world asset narrative.

AccessTimeIconOct 11, 2023 at 4:54 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The tokenization of real-world assets (RWA) narrative is gaining steam in crypto, and Chainlink’s native token (LINK) might be the “safest bet” for investors who seek to profit from the hype, research firm K33 Research said in a Wednesday report.

“If we wish to have exposure to the RWA narrative and avoid being sidelined when it takes off, LINK is the safest bet,” said K33 analyst David Zimmerman.

Tokenization is the term for placing traditional financial assets such as private equity, credit and bonds – often referred to as RWAs – on blockchains. The process is touted as a way to reduce cost and operational friction and improve accessibility and transparency.

Global banks as well as crypto platforms are already taking steps to harness tokenization. JPMorgan earlier today, for example, said it carried out its first live blockchain-based collateral settlement transaction involving BlackRock and Barclays.

There are still many hurdles before RWA’s can reach their full potential, said Zimmerman in his report. Still, the “narrative will be compelling” enough to potentially kickstart “an isolated RWA crypto bubble before there is widespread substantial impact from RWA on the real world.”

Zimmerman explained that Chainlink positioned itself as a key piece of infrastructure to connect blockchains with the outside world via its system of oracles and wide range of partnerships. “It will certainly not be the biggest gainer, but few projects are better positioned to benefit from the narrative,” he added.

Zimmerman advised investors to wait for lower prices to go long, pointing to the long-term support level at around $5.70 to take long positions.

LINK was recently changing hands at $7.30, significantly down from its all-time high of $53 but up 32% this year, CoinDesk data shows.

Edited by Stephen Alpher.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Krisztian  Sandor

Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.