The decentralized finance sector is making waves in industry and will help transfer trillions of dollar’s worth of traditional assets onto the blockchain. However, converting legacy finance into RealFi has been hindered by insufficient institutional-level transparency and fragmented data. Pharos Network is a growing player in the infrastructure area with a key goal to solve this issue through their announcement of the new “Intelligence Partners” cohort for their Pharos RealFi Alliance.
Strengthening the Research and Data Foundation
Pharos has centered its announcement around addressing the “information gap” that many traditional institutional investors perceive as problematic. To enable radical transparency, the company has partnered with leading players in the research and data field, including Dune, Four Pillars, and Web3Caff Research.
Dune has set the benchmark for visualizing on-chain data, previously recognized as Dune Analytics. By providing users with the ability to visualize and track the flow of Real World Assets (RWA) in real-time, Dune will allow users to leverage Four Pillars’ in-depth research on institutional markets for RWAs and Web3Caff’s expertise in space to create a comprehensive set of analysis. In addition, all data associated with RWA tokenization will be verifiable and available for access when an RWA, including real estate, private equity, and government bonds, is tokenized.
Institutional Rails and Compliant Infrastructure
Although transparency plays a key role in these transactions, regulatory compliance, and secure custody form another part of the overall transaction process. Pharos has teamed up with Anchorage Digital, Yield Network, and AquaFlux to create their “Institutional Rails.”
Anchorage Digital, the United States’ first federally chartered cryptocurrency bank, has been selected as a “premier partner” of Pharos. This indicates that Pharos is implementing a “compliance-first” strategy to provide institutional capital with a secure and regulated way to enter the RealFi ecosystem.
Rails for institutional capital to enter the RealFi ecosystem will also be created in conjunction with Alchemy, a leading Web3 developer platform. Alchemy will serve as the primary infrastructure partner for building an ecosystem that is both scalable and conducive to developers.
Bridging the Global Finance Gap
The Pharos RealFi Alliance is not simply a compilation of partners; it is an alliance that has committed itself to establishing a consistent methodology for managing on-chain assets. As the industry transitions from investing in “meme coins” based purely on market speculation to investing in assets based largely on their bona fide utility in the marketplace or their underlying cash values, the landscape of crypto investing is changing rapidly. This shift toward what is often referred to as “RealFi” reflects a broader movement toward assets that offer tangible value and real-world applications.
The evolution toward an asset-driven world has exposed serious gaps in the ecosystem needed to support these types of investments. As a result, there is a growing need for a globally agreed-upon way to track, manage, and settle these transactions on the blockchain.
Conclusion
Pharos Network aims to serve as a connective tissue between the high-energy, K-1 world of Decentralized Finance (DeFi) and international finance. This will be achieved through partnerships with industry giants such as Anchorage and Dune. The RealFi Alliance may create an agreed-upon standard for auditing, trading and managing real-world assets (RWAs) on-chain. The partnership cohort signals a shift for investors, moving them toward a blockchain ecosystem that’s more mature, transparent, and prepared for institutional use
