The way we invest in assets could change with the emergence of tokenization. Whether it’s a real estate property, painting, precious metal and company shares, everything is being tokenized on the blockchain. Asset tokenization refers to the process of converting real assets into digital assets.
What can be tokenized?
From exotic assets like artwork, sports teams and racehorses to traditional assets like bonds, real estate, venture capital funds and commodities, almost every asset class can be tokenized.
- Real Estate
Real Estate tokenization allows fractional ownership, which opens the doors for high capital and increased market participation. Tokenized real estate assets provide an opportunity to expand real estate investment markets. - Commodities
Tokenization of commodities can offer new market opportunities across the sourcing of commodities and trading lifecycle. Converting physical assets into tradable digital assets offers improved liquidity and lesser barriers to entry in asset classes led by institutional investors individuals. - Private equity shares
Currently, information about shareholders and shares of small-to-medium sized companies is recorded on paper or spreadsheets. Each party manages records in its database, creating silos which is inefficient and prone to errors. Tokenization of equity shares allows companies to interact with shareholders by providing information on a single shared and immutable ledger. Shareholders will have ownership transparency and authenticity to run trades on the secondary market. - Physical Goods
Illiquid assets, including artwork, wine, ownership interests in private companies, partnership shares and more, can be tokenized to offer provenance, lending and price discovery through the transparency of the blockchain.
You will not have any competitors. When do you plan to start tokenization of real physical commodity assets?