Prajakta Khule, K. Kumaraswamy, Puja Bhardwaj, Meghana Bhilare
Abstract The increasing complexity of global financial systems has exposed the limitations of conventional centralized banking infrastructures in managing transparency, operational efficiency, security, and real-time transaction processing. Distributed Ledger Technology (DLT), particularly blockchain, has emerged as a transformative digital architecture capable of addressing these structural challenges through decentralized record management, cryptographic security, and automated transaction validation. This study examines the architectural foundations and strategic viability of blockchain-enabled distributed ledger technologies within modern banking and corporate finance. Using a qualitative research approach based on an extensive review of recent scholarly literature, industry reports, and practical financial applications, the study evaluates how different blockchain architectures contribute to organizational transformation. Three representative case studies—consortium corporate lending and syndicate management, cross-border settlement systems, and decentralized Know Your Customer (KYC) identity management—are analyzed to demonstrate the practical implications of enterprise blockchain adoption. The findings indicate that permissioned and consortium blockchain architectures significantly enhance operational transparency, reduce intermediary dependence, improve data integrity, automate compliance through smart contracts, and accelerate financial transactions while strengthening governance and auditability. However, the study also identifies challenges associated with regulatory uncertainty, interoperability with legacy systems, scalability, and institutional readiness that continue to influence large-scale implementation. The research contributes to the growing body of knowledge by integrating architectural analysis with strategic business evaluation and proposes a comprehensive perspective on the role of distributed ledger technologies in reshaping banking operations and corporate financial management. The findings provide useful insights for researchers, financial institutions, technology professionals, and policymakers seeking to develop secure, efficient, and sustainable digital financial ecosystems. Keywords: Distributed Ledger Technology (DLT), Blockchain, Smart Contracts, Consortium Lending, Cryptographic Auditing, Cross-Border Clearance, Financial Disintermediation, Asymmetric Cryptography, Banking and Finance.
While decentralized fintech platforms (DFPs) are a viable alternative to traditional financial systems, their widespread adoption is hindered by cybersecurity concerns. This study investigates the factors shaping user intentions to adopt DFPs amid these perceived cyber risks. Situated within the global challenge of financing the Sustainable Development Goals (SDGs), this research explores DFP adoption as a potential mechanism for enhancing financial inclusion (SDG 10), fostering innovation in financial infrastructure (SDG 9), and promoting inclusive economic growth (SDG 8). Using a hybrid model that merges the technology acceptance model with trust theory, we surveyed 554 business and engineering students across five Indian metropolitan hubs a demographic representing a tech-forward segment of Gen Z poised to be early adopters. Structural equation modelling reveals that while fintech literacy and risk tolerance are significant preconditions, adoption intention is most powerfully predicted by social influence (β = 0.271, p < 0.001) and perceived security in the underlying technology (β = 0.186, p < 0.000). This suggests that for these vanguard users, the decision to adopt is driven more by social validation and technological faith than by individual technical competency. Furthermore, trust moderates the relationship between fintech literacy, perceived security and risk tolerance on the intent to adopt. The paper contributes a comprehensive framework that clarifies users’ adoption motives, aiding researchers who study DFP user behavior in developing nations. The findings provide a critical roadmap for policymakers, developers, and international development agencies aiming to harness digital finance for the 2030 Agenda, demonstrating that building trusted, community-driven ecosystems is paramount to realizing the developmental potential of decentralized technologies.
The Financial Technology (FinTech) ecosystem has become a disruptive one which changed the face of the financial services industry with digital technology, innovative business models and new regulatory framework. The development, distribution and use of financial products and services have been revolutionized by technologies like artificial intelligence, blockchain, cloud, big data analytics, Internet of Things and open banking. This review paper aims to integrate and consolidate the available literature to gain an overview of the development of FinTech from Finance 1.0 to Finance 4.0, and their technological innovations as the backbone of the modern financial systems. It also explores some of the key FinTech business models like digital payments, digital lending, WealthTech, InsurTech and embedded finance, and the essential role of relevant government policies, digital public infrastructure and governance for responsible FinTech innovation. The paper also identifies relevant challenges in the fields of cybersecurity, data privacy, ethics in artificial intelligence, regulatory complexity and digital inclusion that remain to significantly impact the sustainable development of the FinTech ecosystem. Last but not least, new research opportunities are identified in the field of generative artificial intelligence, decentralized finance, green FinTech, and digital financial governance to be pursued by academia in the future. The multidisciplinary perspective employed in this review gives a comprehensive picture of the current developments in FinTech and can help researchers, practitioners and policymakers to understand the opportunities and risks associated with digital financial transformation.
Diese Masterarbeit untersucht, ob Posts von Elon Musk auf Twitter (jetzt: X) die Bitcoin-Volatilität beeinflussen können. Einige meinen, dass Musk in der Lage sei, den Bitcoin-Kurs mit einem einzigen Tweet zu beeinflussen. Deshalb untersuche ich diese Frage, indem ich die Volatilität von Bitcoin modelliere und prognostiziere. Dafür verwende ich ein heterogenes autoregressives Modell der realisierten Volatilität (HARRV) basierend auf Hochfrequenz-Daten von Bitcoin-Preisen. Das Modell erweitere ich nicht nur durch Variablen, die für die Tweets von Musk stehen, sondern auch durch andere. Beispielsweise eine Variable, die zwischen Wochentagen und Wochenenden unterscheidet und eine Variable, die die Häufigkeit der Google-Suchen nach dem Wort Bitcoin widerspiegelt. In der Masterarbeit zeige ich, dass Tweets von Elon Musk, die Interaktionen über dem Durchschnitt aufweisen, einen starken signifikanten Effekt auf die realisierte Volatilität haben. Außerdem zeigt sich, dass das Hinzufügen der Tweets-Variablen zum HAR-RV-Modell dazu beiträgt, die Modellierung und Vorhersage der Volatilität von Bitcoin zu verbessern.
Online disruption of financial systems is one of the most meaningful paradigmatic shifts between centralized institutional frameworks and decentralized blockchain-based infrastructure. In the present research paper, the author thoroughly reviews how blockchain technology and FinTech innovation can transform financial services, payment systems, and capital markets. Our inquiry focuses on the role of distributed ledger technologies (DLTs) in mitigating such areas as transaction speed, cost reduction, improved security, and transparent audit trails. The article dwells upon the ciphertext-policy attribute-based encryption (CP-ABE) systems that are embedded into blockchain networks and used to offer advanced access control and privacy in a multi-cloud financial system. The main technological advancements that are identified by our research are smart contracts, decentralized finance (DeFi) protocols, and blockchain-based custodial solutions. We examine experimental applications that show the increase in performance in terms of transaction processing, efficiency in encryption, and validation of authorization in blockchain-enabled financial networks. The paper deals with issue of regulation, and scalability as well as integration of old financial systems. Results indicate that financial systems based on blockchain are able to cut transaction costs by 87 percent and still have the same level of cryptographic security as current banking systems. The study will add value to comprehending the best blockchain set-ups of financial services providers and give recommendations based on evidence about digital transformation strategies. Future trends are creation of interoperable blockchain networks, high-privacy preserving technologies, and regulatory frameworks that facilitate financial innovation.
The convergence of agricultural digitalization and decentralized finance presents critical opportunities for mitigating carbon-related financial risks in emerging markets. However, the integrity of environmental, social, and governance reporting is frequently undermined by information asymmetries and inadequate audit trust. This paper introduces a cloud-native architectural framework utilizing Amazon Web Services to construct a real-time, blockchain-verified carbon disclosure pipeline. By deploying distributed Python middleware integrated with serverless computational nodes, the system programmatically extracts agricultural carbon intensity metrics and cross-references them against immutable blockchain ledgers. This methodology structurally eliminates manual reporting friction, providing rural credit institutions and multinational enterprises with deterministic, verifiable environmental data. Preliminary architectural evaluations confirm that integrating high-velocity Application Programming Interfaces with decentralized ledgers significantly reduces information asymmetry, establishing a highly scalable foundation for green finance and rural revitalization.
The rapid advancement of artificial intelligence, particularly the breakthroughs in large language models and AI agents, is driving a fundamental paradigm shift in the fintech sector. This paper proposes a theoretical framework to characterize the transition of fintech from a "tool empowerment" phase, where technology serves as an efficiency-enhancing instrument within existing financial structures, to an "ecological reconstruction" phase, where AI agents, embedded finance, and decentralized technologies fundamentally reshape the organizational forms, value creation mechanisms, and competitive dynamics of the financial industry. We develop a three-dimensional analytical framework encompassing technological architecture, institutional logic, and value network to systematically examine this transformation. Through a mixed-methods approach combining comparative case studies of 12 representative financial institutions and quantitative analysis of patent data from 2015 to 2025, we find that: (1) the paradigm shift follows a non-linear S-curve trajectory, with a critical inflection point occurring around 2023-2024; (2) AI agent-driven autonomous workflows can reduce operational costs by 35-48% while improving risk assessment accuracy by 22-31%; (3) the ecological reconstruction phase exhibits distinct network effects where platform-based financial ecosystems achieve 2.3-3.7 times higher customer lifetime value compared to traditional linear models; (4) the transition presents significant regulatory challenges, particularly regarding algorithmic accountability, data sovereignty, and systemic risk aggregation in interconnected AI-financial networks. Our findings contribute to the theoretical understanding of technology-induced institutional change in financial systems and offer practical implications for financial institutions, technology firms, and policymakers navigating this transformative period.
Michael Neubert, Wolfgang Rams, Patrick Gruhn, Marcel Lötscher
Perpetual futures (often called perpetual swaps) are the dominant crypto-derivatives instrument. They replicate the economic exposure of a futures contract without an expiry date. They replace maturity-based convergence with a funding mechanism that transfers cash flows between longs and shorts, typically every eight hours. This paper explains how perpetuals evolved from early proposals for non-maturing futures into a standardized crypto market instrument, and why key design choices changed over time. It synthesizes recent theoretical and empirical research on funding design, pricing, and arbitrage intuition, market microstructure, liquidation risk, and regulation. Finally, this study proposes a research agenda organized around funding design, constrained arbitrage, transparency, decentralized exchange design, policy, and legal classification, because recent U.S. and EU developments show that the same economic structure may be characterized as a futures contract, swap, CFD-type instrument, or other derivative depending on statutory definitions, venue design, and supervisory interpretation. This paper proposes the following definition: a cryptocurrency perpetual is an open-ended, margin-based derivative that gives synthetic long or short exposure to an underlying crypto asset and replaces expiry-based settlement with periodic funding payments that anchor the contract price to a reference spot price.
Blockchain technology, originally devised to support the peer-to-peer transfer of Bitcoin, has evolved into a multipurpose digital infrastructure with far-reaching implications for business and finance. This paper undertakes a conceptual and exploratory examination of how blockchain is reshaping financial services, corporate governance, and commercial transactions. Drawing upon secondary literature, industry reports, and case illustrations, the study investigates blockchain applications across banking, cross-border remittances, supply chain finance, trade finance, capital markets, insurance, and decentralized finance (DeFi). It also discusses the enabling features of blockchain — decentralization, immutability, transparency, and smart contracts — that differentiate it from conventional centralized systems. The paper highlights the strategic benefits accruing to firms that adopt blockchain, including reduced transaction costs, faster settlement, enhanced traceability, and improved trust among counterparties, while also identifying barriers such as regulatory ambiguity, scalability constraints, energy consumption, and limited interoperability. The discussion synthesizes findings from extant studies to present an integrated view of blockchain’s transformative potential and its practical limitations. The paper concludes that while blockchain is unlikely to replace traditional financial infrastructure entirely in the near term, its selective and hybrid adoption is poised to redefine business processes, financial intermediation, and value exchange across industries.
National currencies have long been associated with nation-state building and the expansion of state control. The rise of cryptocurrencies has the potential to disrupt state-society relations traditionally mediated through state-issued currencies. However, unregulated cryptocurrencies may be perceived as too unsafe to act as a true alternative to government-regulated currencies or investment vehicles. Cryptocurrency’s failures may instead lead people to appreciate the role of government more. Using the case of South Korea, we show that public discourse on cryptocurrencies has been more negative than positive in recent years. A demographically representative survey experiment reveals that exposing South Koreans to information about the volatility of cryptocurrencies increases their trust in government, as hypothesized. At the same time, exposure to positive information about cryptocurrencies does not undermine trust in government or support for government regulation. These results point to limitations of unregulated cryptocurrencies when it comes to eroding state-society relations.
Elsir Ali Saad Mohamed, Khalid Ibrahim Abdelaziz Ishag, Omnia Salem, Ahd M. M. Abudraz · 8 authors
The convergence of blockchain technology and the Metaverse is redefining digital media ownership and distribution. Drawing on survey data from 613 digital media professionals and a qualitative synthesis of literature (2023–2026), this study examines how blockchain-based mechanisms—specifically non-fungible tokens (NFTs), smart contracts, and decentralized identity (DID) solutions—are associated with creator sovereignty and platform interoperability. Using a moderated chain mediation model within a socio-technical systems framework, the analysis shows that blockchain integration is associated with lower perceptions of platform dependency. This association is linked to a sequential pathway whereby higher decentralized governance is associated with lower intermediary control, which in turn is associated with higher creator monetization autonomy. Connectedness to decentralized protocols differentially shaped these processes: at the technical level, stronger protocol integration strengthened the negative association between blockchain adoption and intermediary dependence; however, at the governance level, a paradoxical pattern emerged, whereby stronger decentralization was associated with higher perceived governance overload in the context of algorithmic decision-making. By disentangling the technical and governance pathways, this study extends current understanding of digital media ecosystems beyond simple use-outcome associations. The findings highlight the importance of considering individual differences in digital literacy and institutional trust when designing blockchain governance frameworks. We conclude that blockchain is not merely an incremental improvement but a necessary architectural requirement for a resilient and equitable Metaverse, contingent upon addressing the risks of surveillance federalism and the digital divide.
Ádám Bereczk, Zoltán Musinszki, Erika Szilágyiné Fülöp, Bettina Hódiné Hernádi
This study investigates the allocation of pre-sale capital by blockchain technology-based startup ventures, with a specific focus on the Play-to-Earn (P2E) segment within the Web3 ecosystem, and its impact on token price performance. Our aim is to determine the proportion of initial capital that P2E startups, according to their business plan (whitepaper), allocated to key areas such as team and advisor expenses, marketing activities, and product development. Subsequently, this research centers on the question of how the focal areas of pre-sale capital utilization (team, marketing, development) correlate with the subsequent price performance of the tokens issued by these startups. The timeliness and relevance of this topic are underscored by the dynamic evolution of blockchain technology and the P2E model, as well as the critical role of startups' capital allocation decisions. Understanding how the utilization of initial funding influences long-term value is also of paramount importance for investors. Based on the results, while excessive marketing expenditures may offer a project short-term benefits, this strategy can potentially have negative long-term consequences. A project's financial viability is contingent upon competent human resources and the insights of external experts; nevertheless, these elements alone are not definitively sufficient. The significance of product development was only evident when the effect was measured in Bitcoin terms; no correlation was found when measured in Dollars.
Ignatia Bintang Filia Dei Susilo, Vidya Purnamasari, Sulistya Rini Pratiwi, Yelly Zamaya · 5 authors
The rapid development of smart-contract-based blockchain ecosystems has transformed the perception of digital assets. However, the extent to which these assets are influenced by macroeconomic conditions in emerging markets remains poorly understood. This study aims to examine the long-term and short-term relationships between three major smart-contract platforms: Ethereum (ETH), Build and Build (BNB) Chain, and Solana (SOL), and several Indonesian macroeconomic indicators: money supply (M2), consumer price index (CPI), the rupiah-to-US dollar exchange rate (IDR/USD), and the policy interest rate (BI Rate). The study draws on monthly data spanning April 2023 to September 2025. The findings reveal that each platform exhibits a distinct degree of sensitivity to Indonesian macroeconomic conditions. Overall, the three platforms demonstrate a strong long-run relationship with the selected macroeconomic variables. The rising money supply (M2) tends to have a positive effect on all three platforms, while the influence of the exchange rate varies across ecosystems. Furthermore, this study traces how shocks in macroeconomic variables are transmitted to cryptocurrency prices and identifies distinct volatility patterns across the three platforms. Its findings contribute to understanding the relationship between crypto assets and macroeconomic conditions. It also offers practical insights for portfolio diversification strategies and for developing regulatory frameworks in Indonesia's growing digital asset market.
Crypto's dominant narrative—tokenizing treasuries, equities, and lending products—cedes value to incumbents who will treat any blockchain as a replaceable backend. The real opportunity is alternative markets: economic coordination problems that Wall Street structurally cannot or will not solve. We catalog 50 alternative markets across six categories, identify the ~20 that are genuinely blockchain-necessary, and estimate $200B–$1T in new annual GDP (0.2–1.0% of global output). We then argue that Ethereum will not pursue these markets—its ecosystem is structurally captured by the tokenization narrative, as evidenced by the shutdown of pioneering projects like Goldfinch and a broader exodus of builders from the ecosystem. We propose that a purpose-built, privacy-native blockchain is the correct vehicle, and lay out the architecture, cold-start sequencing, and talent recruitment strategy to build it.
G. Suresh, S. Manimegalai, M. Amsaveni, R. Shankar · 5 authors
Embedded finance blended with decentralized finance (DeFi) and generative AI (GenAI) is reinventing financial services, but the impact of this phenomenon on consumer trust and emotional resiliency is poorly studied. This research has generated and tested the FINTRUST 2.0 framework based on a cross-sectional survey of 384 adults (18-45 years) in major Indian cities where Fintech is already used. The analysis of data was done through EFA, CFA and SEM. It has been found that consumer trust is multidimensional based on security, transparency, autonomy, reliability, ethics, and empowerment and serves as an effective intervening variable between the adoption of Fintech and emotional resilience. The impact was probably the strongest in the case of GenAI, then embedded finance, then DeFi. The results elevate the state of Fintech psychology and provide coverage of a policy and design implications of trust-based, emotionally sustainable digital finance systems.
Discover how Tokemak is revolutionizing decentralized finance through its advanced liquidity management solution. Get insight into the protocol's mechanism, governance structure, token purpose, and the significance of its emergence in the DeFi world.
Corporate Social Responsibility (CSR) reporting has become an important mechanism for organisations to communicate their environmental, social, and governance commitments to stakeholders. Although recent regulatory initiatives have sought to improve the consistency and reliability of CSR disclosures, concerns regarding transparency, data integrity, and reporting of credibility remain. In response to these challenges, blockchain technology has gained attention as a potential tool for strengthening CSR reporting practices. This study explores the role of blockchain in CSR reporting through a systematic review of 21 publications covering blockchain technology, smart contracts, and non-fungible tokens (NFTs). Drawing evidence from academic, technical, and industry sources, the review examines how these technologies can support greater transparency, accountability, and stakeholder trust while highlighting current implementation challenges and research gaps. The findings suggest that CSR reports can be recorded and verified as NFTs on a blockchain network, offering a secure and traceable approach to reporting. Unlike conventional NFTs used for digital assets, CSR-related NFTs possess distinctive characteristics, including non-transferability and the need for regulatory oversight during their creation and validation. This study contributes to the emerging literature by proposing a blockchain-based CSR reporting architecture that integrates smart contracts and NFT standards while recognising the roles of companies, verifiers, and regulatory authorities. The proposed framework also advances understanding of the practical and conceptual considerations associated with CSR-focused NFTs, providing a foundation for future research and implementation.
The rapid evolution of financial technology has transformed the global financial landscape, creating opportunities for innovation, inclusion, and efficiency while introducing systemic risks, regulatory uncertainties, and challenges to financial stability. This study presents a bibliometric review of global research trends at the intersection of financial technology and financial stability from 2000 to 2025, mapping the intellectual structure, identifying emerging themes, and highlighting influential contributions. Using Scopus data, the analysis examines 339 peer-reviewed documents across 242 sources. Bibliometric techniques were applied through VOSviewer, Bibliometrix (R), and Biblioshiny to evaluate publication trends, influential authors, thematic clusters, co-authorship networks, and keyword co-occurrences. The results show an average annual growth rate of 21.46 percent, with a marked increase in publications after 2017 coinciding with the mainstream adoption of digital finance and heightened policy focus on financial resilience. Findings indicate that financial technology promotes financial inclusion, banking efficiency, and economic empowerment, yet also introduces cybersecurity threats, regulatory gaps, and systemic vulnerabilities, particularly in emerging markets. Dominant themes include blockchain, digital payments, financial literacy, and central bank digital currencies, with decentralized finance and artificial intelligence emerging as fast-growing areas of scholarly interest. Geographically, China leads in publication volume, while the United Kingdom and the United States dominate in scholarly influence. This review provides a strategic roadmap for researchers and policymakers to navigate the evolving financial technology landscape and emphasizes the need for future research to integrate ethical governance, artificial intelligence risk management, and inclusive financial innovation frameworks.
Blockchain is a distributed ledger system that uses a decentralized consensus protocol to record transactions securely over a network of computers. Unlike established centralized systems, blockchain runs on a peer to-peer network with every participant (node) having access to the entire database and its full history. This, then, has the advantage of making the system more resilient to corruption or hacking. The ledger (transaction history) is replicated across multiple participants on the hardware framework. Transparency: All participants have the same copy of the blockchain (without a need for a central authority). Autonomous agreements are contracts that execute themselves because their content is directly encoded in them. They apply and effectuate the conditions of a contract without intermediaries when certain predefined stipulations come into play. The decentralized and secure method in which cryptocurrencies operate is through the mechanism of blockchain, which is widely acknowledged. It can simplify the process, decrease fraud, and make it safer. This study pursues a comprehensive survey of the diversified use cases of blockchain throughout the global financial ecosystem. This chapter is an effort to shed light on the Strengths, Weaknesses, Opportunities, and Threats of blockchain technology in financial services.
Smart contracts manage high-value digital assets, making their security a critical priority. In this work, we present a preliminary ecosystem analysis of how smart contract vulnerabilities are currently classified, disclosed, and managed across academia and industry. Our findings reveal the fragmented nature of Web3 security, characterized by a history of attempted classification schemes and a lack of proper vulnerability disclosure. We propose several hypotheses for this divergence from traditional software standards, including ideological decentralization, reputation management, and misaligned financial incentives. A case study of Uniswap illustrates these challenges, revealing inconsistent reporting and the difficulty of verifying vulnerability data. Ultimately, this work serves as a foundational step toward establishing unified methodologies for the detection, management, and disclosure of smart contract vulnerabilities.
Zero-knowledge privacy protocols let users hide transaction details on public blockchains. Systems like Tornado Cash, FixedFloat, and the Houdini Private Swap feature recently added to Jumper rely on cryptographic techniques that unlink sender and receiver addresses. These constructions give legitimate users meaningful protection for their financial activity. They also create a straightforward dual-use dilemma. The February 2025 Bybit incident supplies a clear example. Thieves stole $1.5 billion in ETH, the largest cryptocurrency theft on record. The FBI linked the attack to North Korea’s Lazarus Group. The stolen funds moved quickly through Tornado Cash. The resulting lack of transparency triggered a wave of customer withdrawals. Bybit responded by securing loans of several hundred million dollars from other institutions to keep its operations running. Cases like this demonstrate that zk-based privacy tools, when used at large scale for illicit purposes, can accelerate liquidity crises and place costs on market participants who had no involvement in the original theft. The real problem is not the underlying mathematics that delivers privacy. It lies in the missing mechanisms that could impose accountability on criminal actors while leaving the privacy protections for everyone else intact.
Sai Srikanth Madugula, Peplluis Esteva De La Rosa, Daya Shankar
Decentralized Finance (DeFi) lending protocols currently rely on heuristic, utilization-based bonding curves that mandate severe over-collateralization, systematically excluding under-collateralized assets like corporate invoices. This paper introduces a mathematically optimal pricing mechanism for decentralized credit: the Reverse Kelly Automated Market Maker (rkAMM), the core engine of our proposed lending framework. By inverting the Kelly Criterion, traditionally used for optimal bet sizing, we construct a dynamic interest rate discovery protocol that explicitly prices individual loan risk. The rkAMM ingests real-time Probability of Default (PD) streams from an off-chain Explainable AI oracle and dynamically calculates the exact interest rate required to sustain target liquidity provider (LP) yields. We mathematically derive the Reverse Kelly pricing function ($r = \frac{y + PD}{1 - PD}$), proving its strictly convex superiority over Aave and Compound's static utilization curves in managing capital efficiency. Furthermore, we deploy the rkAMM architecture via Solidity smart contracts, optimizing for gas-efficient 1e18 (WAD) floating-point arithmetic. To ensure decentralized transparency, our simulation infrastructure leverages MLflow for tracking yield hyperparameters, Data Version Control (DVC) linked to DagsHub for versioning Real-World Asset (RWA) data arrays, and localized edge-inference via Ollama (Llama-3) and Hugging Face (FinBERT) for zero-cost predictive modeling. Monte Carlo simulations across 10,000 macroeconomic stress scenarios confirm that the rkAMM maintains protocol solvency and stabilizes LP yields at 12-15\% net of expected credit losses. This work provides the foundational financial engineering required to bridge the \$2 trillion global supply chain finance gap using permissionless blockchain infrastructure.
Tokenization is the digital representation of an existing physical or financial asset on a distributed ledger. It refers to the process of recording traditional assets, such as financial instruments, collateral portfolios, or real-world property using Distributed Ledger Technology (DLT). Asset tokenization specifically involves linking or embedding the economic value and legal rights of tangible or intangible assets into digital tokens created on a blockchain. The concept of Tokenomics describes the ability of organizations to design business models and projects based on the creation, distribution, and trading of digital tokens. These tokens can represent both real objects and intangible assets, including cash, patents, copyrights, and other forms of intellectual property. By enabling assets to be converted into divisible digital units, tokenization facilitates fractional ownership and improves liquidity. This procedure is increasingly being applied to a wide range of asset classes, such as real estate, commodities, equity shares, intellectual property, and personal valuables. Blockchain technology plays a critical role in ensuring the security, immutability, and transferability of these tokens. The aim of this research is to examine the key factors that determine the adoption of asset tokenization in the contemporary financial system. The study analyzes the benefits and costs associated with tokenization and explores current developments and anticipated future trends in this field.