R3 and the Solana Foundation are teaming up to bring traditional financial (TradFi) institutions to the Solana blockchain.

R3, a U.K. developer of blockchain technology for financial institutions, is teaming up with the Solana Foundation to bring the former's clients and their tokenized real-world assets to Solana.

A number of large banks and other traditional financial (TradFi) institutions are set to use the Solana (CRYPTO: SOL) blockchain for their tokenization efforts, according to an announcement by R3.

What Happened: The U.K. developer of blockchain technology for financial institutions is teaming up with the Solana Foundation to bring the former's clients and their tokenized real-world assets to Solana.

Through its blockchain platform, Corda, R3 holds over $10 billion in assets and counts the likes of HSBC (NYSE:HSBC), Bank of America (NYSE:BAC), Bank of Italy and the Monetary Authority of Singapore among its participants.

Tokenization, the term for minting real-world assets such as stocks and bonds as digital tokens that can be traded on decentralized networks, is one of the principal use cases of blockchain technology attracting the attention and investment of the TradFi world.

A recent report by Boston Consulting Group and crypto payments company Ripple (NYSE:XRP) said the tokenized market could reach $18.9 trillion by 2033.

R3's aim is to supercharge the scale and liquidity of the tokenized asset ecosystem by making the assets available on a public blockchain like Solana.

The total value of assets held on Solana may be dwarfed by Ethereum (CRYPTO: ETH), but it processes more transactions and has more active addresses.

"As the world's most used public blockchain, Solana ... [is] the ideal foundation for the next generation of regulated digital finance," R3 said.

Why It's Important: R3's clients will be able to leverage Solana's high throughput and low transaction fees to efficiently execute a broad range of DeFi use cases such as borrowing, lending, and derivatives.

The partnership will also open up new revenue opportunities for R3 and Solana, as they can jointly develop and launch new products and services for the joint ecosystem.

"This collaboration marks a significant step in advancing the future of finance by merging R3's expertise in delivering cutting-edge blockchain solutions for TradFi with Solana's robust and efficient public blockchain technology," said Simon Pilkington, CEO of R3. "Together, we will unlock new possibilities for financial institutions to participate in the Web3 ecosystem and shape the future of the industry."

Later this year, R3 plans to launch a tokenized bond offering on Corda, which will then be brought to Solana to provide even broader access to the asset.