The revolution of cryptocurrencies and blockchain technology completely transforms the asset industry and the way investors look at it. The concept of tokenization of assets has emerged widely and has been attaining stable growth, especially in the year 2019. It has also been one of the most significant blockchain trends. Be it any asset such as real estate properties, precious metals, art paintings, etc., and tokenization is paving the way for new opportunities, to the investors, and taking the business to a whole new level.
If you want to get to know more about what tokenization has to offer, and unlock exhilarating benefits for your business, this article is for you. Let’s talk all about it, starting with a quick glimpse of the concept of asset tokenization.
What does asset tokenization mean?
Asset tokenization is the concept of tokenizing the asset values, including company shares, real estate, properties, paintings, any physical asset into digital tokens. The assets are tokenized on a blockchain technology platform, which is a globally distributed ledger that helps record, verify, and secure transactions.
Now let’s discuss the top 10 benefits of asset tokenization, which will, in the end, build up an urge in you to tokenize your assets.
The top 10 benefits asset tokenization offers you!
Liquidity is one of the most crucial factors for an asset exchange business. The industry faces many hurdles because of illiquid assets. By tokenizing your assets, you attain increased liquidity, which helps with buying/selling properties within a short turn-around time. Greater liquidity helps manage price shoot ups.
The tokenization of assets removes geographical barriers. Anyone from anywhere around the world can access the network and register to conduct transactions in a tokenization platform. The platform also comes with automated KYC/ AML verification, which allows only authenticated traders and eliminates fraudsters.
Fragmentation of assets and ownership
By tokenization of assets, the asset value is divided into multiple shares of tokens as well as the ownership of each share. This paves the way for small-time investors to participate and opens up an opportunity to invest in a highly profitable business, which is possible only for deep-pocket investors in the traditional asset business.
As the platform is backed by blockchain technology, every transaction is recorded and cannot be altered/ erased. There are no chances of fraudulent, incase if any, the transactions will be canceled, and the investor gets returns within a flash.
Tokenized asset platforms oblige to every necessary legislation according to the particular location, registered accordingly. This avoids any glitches in the future and ensures a seamless, hassle-free business experience to the investors.
Retain intrinsic value
Tokenized platforms come with digital certificates that enable direct involvement in the process of generating revenues and have a real value of their own. They can be sold in the market individually without being involved with the tokens and their values. This prevents users from risks and being prone to price fluctuations.
The blockchain-based tokenization platform provides transparency to the users. The platform discloses information to the users about the owners, financial statements, partnerships, transaction decisions, issuance of tokens, etc. and makes the investors entitled to any related information.
The digital tokenized asset platform is inbuilt with multiple core functionalities such as management of assets, decision making, buying/selling and storing, multiple payment modes, loyalty programs, rating services, etc., which will enable an efficient, smooth business process for the investors.
Scalability and efficiency
Tokenized asset platforms allow direct peer-to-peer transactions and eliminate involvement from third parties. The integration of smart contracts enables the self-execution of transactions in a secure manner, allowing users to carry out their business efficiently. Tokenization platforms are highly-scalable and can be customized based on user preferences.
Tokenized asset platforms are readily available with every feature, technical, and security integrations required to smoothly run the business, and the platform can be launched in a jiffy at the most affordable prices.
Thus, tokenization alongside blockchain technology completely changes the face of the real estate industry and takes the business to a whole new level. Because of this opportunity to conduct global trades now in a more convenient, secure, quicker manner, potential real estate investors from all over the world prefer tokenizing their assets.If you want to join this revolution and tokenize your assets, the time is never better than now.