Why Tokenization?
Definition
Tokenization is the process of converting any asset (financial, legal, physical ...) into a programmable digital representation stored on a blockchain.
In addition to converting digital ownership, tokenization can also capture any economical, governance or utility properties of an asset and express it as a standardized digital token.
Tokenization unlocks new layers of distribution, automation, liquidity and utility that traditional systems cannot provide.
Benefits
By representing assets as digital tokens, we unlock several key benefits inherent to blockchain technology:
- Increased Liquidity: Previously illiquid assets can be traded more easily on secondary markets.
- Fractional Ownership: Assets can be divided into smaller, more affordable units, broadening the investor base.
- Enhanced Transparency: All transactions and ownership records are immutably stored on the blockchain.
- Improved Efficiency: Automation through smart contracts reduces the need for intermediaries and manual processes.
- New utility: Holding a token unlocks new functionalities such as collaterization, access to markets and more
Updated 11 days ago
