After the appearance of the first digital currency, everything is completely changed in this digital world. The first crypto token made everyone believe that blockchain technology can make any assets digital. The emergence of cryptocurrencies, tokens, and blockchain technology has rattled almost many major industries. Currently, many companies have completely started adopting blockchain-based cryptos for their business. As we know different types of Crowdfunding models came into the market to raise the funds effectively. Such as ICO, IEO, and STO. When we come to STO, only security tokens will take place. This means that only asset-backed crypto tokens will be sold to raise the investor’s funds.
Also, STO has become a trendy crowdfunding platform in recent years. So many startups and entrepreneurs started to create an asset-tokenization platform for their businesses. Many people showed interest in asset tokens. So the term “Asset Tokenization” became the hot talk in the blockchain industry. In this blog, let us see what is asset tokenization and the 7 ideal ways to tokenize your real-time assets.
Asset Tokenization – Tokenize all your Real-world Assets:
Asset tokenization is the process of converting ownership rights of a particular asset into a digital token on a blockchain network. This process is far similar to securitization. financial intermediaries and crypto enthusiasts around the globe are figuring out how to move real-world assets onto blockchain networks. Also, to gain the benefits of major cryptocurrencies while keeping the characteristics of the asset.
Now you may have a question: Why and how can we tokenize the Assets?. Our world is full of filled with many valuable assets. Such as stocks, real estate, gold, diamond, petroleum, oil, and more. So the Asset tokenization platform helps you to convert the rights of these real-time assets with exact market value into a digital token. Such asset-backed tokens can be completely stored and managed on a powerful peer-to-peer blockchain network. This means that the asset Tokenization platform can have a great impact on trading and investment in the blockchain industry.
In asset tokenization platforms, asset tokens can represent participation rights in the form of p2p networks. So It allows investors and other persons to buy shares in given particular resources. In the blockchain industry, tokens have regained their prosperity after the appearance of asset-backed crypto tokens. Those tokens are a great source of investment to invest your money. Implementing blockchain in asset tokenization helps to safeguard funds and asset ownership information. Tokenizing your assets will help users to trade after listing in any popular exchanges. In asset tokenization, there are two main types of assets. Such as fungible and non-fungible assets.
Now let us look at,
7 Ways to Tokenize Your Real-World Assets:
Asset tokenization can include any kind of financial instrument. Such as shares, securities, bonds, papers, and tangible, or intangible assets. There are 7 ways that you can tokenize tour real-world assets using the Asset tokenization platform. They are
- Venture capitals
These kinds of assets are especially illiquid. It actually takes more than 5 or 10 years to get the profits of their investment. So if you are investing in this asset, then you should have quiet patience to get high returns. But by using a tokenization platform, investors can easily enter the blockchain market. Also, they can quickly buy and sell shares. Popular blockchain projects like blockchain capital and spice VC want to lower their barriers. This allows many investors to buy investment portfolios and sell them faster. If the liquidity is high, then it encourages more participants. So the increased liquidity will allow more users to participate in this asset class.
Real estate is one of the great industries that grab more benefits from asset tokenization. Several blockchain-based startups like atlant, deedcoin, and block square. These startups are working on ways to tokenize their residential and commercial real estate. Real-estate is a widespread and big industry which will be always in demand. But this industry also faces many challenges and downfall due to some reasons.
Tokenizing the real-estate asset will be a good choice in providing for fractional ownership. Also, these tokens can be tokenized efficiently under the blockchain network. By tokenizing the real-estate asset, investors can purchase and sell properties by avoiding intermediates. So they can earn more profits in a hassle-free manner. Also, investors benefit in many ways. Such as lower transaction costs, broadening their portfolios, easier access, and high volume liquidity.
- Precious metals
When it comes to precious metals there are lots and lots of metals available around the world. Such as diamond, gold, silver, and more. Blockchain startups like Cedex help investors to purchase and sell gold, silver, and diamond in a secure manner. Asset tokenization helps other traders to buy and sell them more securely. So tokenizing those precious metals creates fractional ownership. Also, this platform provides transparency for investors. So investors can properly analyze the value of those metals. Also, they can set the price of the asset according to the market.
- Rare Art and Luxury cars
Luxury arts are completely owned by potential and wealthy investors. But blockchain projects will change that. Blockchain-based asset tokenization offers a decentralized art gallery to all budding investors. This platform provides quick access to investors for the finest art projects. Here investors can gain exposure to their rare arts without physical preservation costs. The asset tokenization platform avoids the auctioning process. It allows buyers/sellers to process instant transactions between them directly in a secure manner.
Currently, the traditional commodities system faces many problems in the real world. Such as lack of trust, increased price, the involvement of third parties, and more. Asset tokenization built using a blockchain network eliminates these kinds of challenges. Also, it allows investors to trade at a low cost in a high-end secure manner. So supply chain management is hugely benefits by the blockchain network. Also, it helps in converting the business to the next level.
A stablecoin is a kind of digital currency that is completely backed by a real-time asset or stable assets. Such as fiat currency, gold, silver, or any cryptocurrency. Stablecoins are not issued and monitored by any intermediate. Stablecoins tend to pair all the perceptions of blockchain with the stability of fiat currencies. As for now, there are more than 200+ stablecoins available in the marketplace. There are some prominent stablecoins, such as USTD, TUSD, DAI, USDC, and more. These stablecoins are commonly pegged to $1 with various governance protocols and features. Stablecoins are originally generated to tackle price volatility and investors can process efficient trading.
- Sports teams and celebrities
Here asset tokenization helps investors with the decentralized marketplaces by investing in players and clubs. Also, it gives financial support to them for their career for future returns. So clubs can sell their ownership rights to raise the capital. Also, they can sign players in the future for boosting the team’s value.
The 7 ways of tokenization have shown you a better vision to back your tokens with different assets. Currently, when compared to coins, tokens are adding higher values. There are so many innovations evolving in tokens like DeFi tokens. DEGO tokens, and more.
When tokens have major importance in the cryptocurrency industry, why don’t you think about starting your business by creating the latest tokens? Creating these latest tokens is the easiest task to complete when you find a reliable STO script provider like Icoclone. There are so many other STO script providers available in the market. But they don’t have updated knowledge on the token’s security features. But Icoclone is slightly different here. We have in-depth work experience in producing STOs with integrating advanced security features. Collaborating your project with Icoclone will be the first and the best step that you have taken to initiate to launch your dream token.