Injective describes itself as a “Blockchain Built for Finance.” Observing their recent activities, it is evident that they are not merely a chain specialized in DeFi, but are making strides to encompass the entire financial system at the blockchain level. This slogan is not just a marketing phrase; it reflects a genuine vision backed by various initiatives.
Two prominent initiatives are the RWA Module and the recently announced Injective ETP product. Let’s take a closer look at both.
In January of this year, Injective introduced the RWA (Real-World Asset) module through the Volan update, enabling institutions to easily create “permissioned products” on the Injective platform. This initiative marks the first attempt by a public blockchain to achieve such a feat.
Since then, Injective has been developing tailored infrastructure solutions that allow traditional financial institutions to seamlessly adopt blockchain technology while maintaining the decentralized nature of a public blockchain. (A detailed technical analysis of the RWA module will be covered in a subsequent article.) This effort has now manifested in the form of an ETP (Exchange Traded Product).
An ETP, or Exchange Traded Product, is listed on an exchange and tracks the value fluctuations of an underlying asset. Recently, Injective attracted significant attention by announcing the launch of an ETP named AINJ, through a management company called 21Shares, with the Injective token (INJ) as the underlying asset. Notably, staking rewards can also be obtained through AINJ, allowing investors to benefit from the potential upside of Injective. As an ETP, it can be traded in the stock market, adding to its distinctive features.
What is even more interesting is that AINJ can be purchased in approximately 25 different banks and brokerages. This increases the exposure of Injective’s native asset, INJ, providing a new avenue for institutions to enhance liquidity.
Our thought on why we have this perspective
I have two observations regarding the recent launch of the ETP and Injective's overall strategy. First, I realized that Injective is not just focused on decentralized finance, but aims to encompass the entire financial sector. Second, the introduction of this ETP presents a new opportunity to attract more participants through the incentive of the INJ token.
Both the RWA module and this ETP highlight Injective's proactive efforts to bring traditional financial capital and customers on-chain, more so than any other blockchain. It’s easy to mistake Injective for a general-purpose blockchain when immersed in its ecosystem, but in reality, Injective has long been dedicated to developing infrastructure specifically for finance. These efforts are now materializing in the form of products like the ETP.
The launch of the ETP is excellent news for Injective. I believe that the essence of blockchain lies in incentive alignment. The ability of a blockchain to share common incentives with a large number of people is crucial. In this context, Injective's launch of AINJ is highly significant. As more people gain exposure to Injective, the community will grow larger, and a vast community is the most critical asset for a blockchain.
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