Currently, we are rapidly evolving many advanced technologies in this digital world. The emergence of digital currency and blockchain technology has disrupted almost every major industry. Many business people and startups have started adopting blockchain-based cryptos for their business. It is due to the hidden benefits involved in digital currencies.
The traditional asset industry involves many challenges. such as the trading process, the involvement of third parties, constant price fluctuations, and more. This is where the term “Asset Tokenization” comes into action. Tokenizing assets with the blockchain helps to remove all these unwanted barriers. Also, the way investors value them into the next new level. In this blog, let us figure out what is asset tokenization and assets that we can tokenize.
What is Asset Tokenization?
Asset tokenization came into the crypto world to move real-time assets into a blockchain. In other words, you can also say asset tokenization as asset-backed crypto tokens. These crypto tokens can represent participation rights in the form of decentralized networks. This way allows investors and business persons to purchase shares in given particular resources. In the crypto community, tokens have regained their prosperity after the arrival of asset-backed crypto tokens. These tokens are the finest source of investment to invest your funds.
Asset tokenization helps you to convert the rights to assets with exact market value into a digital token. Such tokens can be completely stored and managed on a decentralized blockchain network. The asset Tokenization platform can have an immense effect on trading and investment.
Blockchain technology helps in protecting the investor’s funds and asset information. Also, it records every transaction that happens with the asset-backed crypto tokens. The recording process is done by a chain of blocks coded with cryptography. By tokenizing your assets, global crypto users can start trading them in a crypto exchange after listing. You can manage the value under a smart contract written on the blockchain network. There are two major types of assets for tokenizing in the industry. Such as
- Fungible assets
- Non-fungible assets.
Why Should You Tokenize Your Assets?
As we already mentioned in this blog, asset tokenization helps to remove all the barriers in the traditional asset industry. Also, it helps to move your business to the next level. There are some hidden benefits in tokenizing your real-time assets.
They are
24*7 market access
Instant settlements
Greater liquidity volumes
Globalization
Enhanced high-level security
Fractional ownership
Lower risks
Avoidance of intermediates or third parties
Blockchain immutability
No regulations or limitations
Reduced cost
Quick and efficient transactions
User transparency
Improved legal compliance
Now let us have a look at
Assets that you can Tokenize:
The asset tokenization platform can involve any type of financial instrument. Such as shares, securities, bonds, tangible and intangible assets. There are some asset varieties that you can tokenize using the Asset tokenization platform. They are
i) Equity shares and bonds:
Equity shares and bonds can be easily digitized and converted into a tokenized form. so that it helps you to completely break down your financial responsibility for your equity.
ii) Precious metals:
In the case of precious metals like gold, diamonds, silver, and more. Asset tokenization helps investors and other traders to sell them more securely. The asset Tokenization platform provides transparency to investors. So that they can properly analyze the value of the metal and set prices according to the market value.
iii) Art and luxury objects:
Blockchain-based asset tokenization platforms provide a peer to peer art gallery. Also, it provides easier access to investors for the best art projects. Here investors can gain liability for their art without having to go through physical preservation costs. Asset tokenization eliminates the auctioning process. Then it allows purchasers and sellers to conduct instant transactions between them directly.
iv) Real Estate holdings:
Real estate is one of the good industries to gain more profits from asset tokenization. It is a vast spread industry and always on demand. It will be the best choice in providing for fractional ownership. Also, it can be tokenized efficiently. By tokenizing the real-estate asset, they will get benefits in many ways. Such as lower transaction costs, broadening their portfolios, and getting easier access.
v) Goods and commodities:
Physical goods and commodities can also be completely tokenized using an asset tokenization platform. Those goods and commodities include art crafts and inventions.
vi) Inventions and discoveries:
If you have invented a vaccine or any antibiotics for the Coronavirus. Then no problem, you can tokenize your invention with this asset tokenization platform. So that you can share the ownership with other investors.
Final thoughts:
Experts say that in recent years, asset tokenization has gained an immense attraction among global investors. Especially in 2019, it gained more and we can also expect more in the future. Currently, the tokenization market is widely creating high opportunities for potential investors and startups entering the market. If you want to be part and obtain huge benefits for your business. Then tokenize your assets today. All you have to do is choose the best asset tokenization service offering company. Such companies will tokenize your assets with reliable implementations at an affordable price.