ASSET TOKENIZATION

As the term “tokenization” has been receiving popularity across the globe in recent years, it’s important to understand why people are excited to lean towards it.

Why the process of tokenization?

Greater Liquidity: Using a blockchain platform, tokens represent private company securities and are sold to participants who have already been pre-vetted as authorized investors with the necessary capital.

Higher Accessibility: With asset tokenization on blockchain, assets can be fragmented to a minimum possible amount in the form of tokens, allowing investors to acquire a small fraction of assets.

More Transparency: The token-holder's rights and responsibilities are embedded in the contracts that define token attributes, along with a complete record of ownership. Transparency is key.

Immutability: The data stored on blockchain cannot be changed, deleted, or corrected, assuring the asset information and transaction records are accurate, as they are verified and cannot be changed once recorded onto the blockchain.

No Intermediaries: With the introduction of Smart contracts and characteristics like immutability, tokenization has also reduced the number of intermediaries required in a transaction.

Cheaper and Faster Transactions: Smart contracts will be used for token transactions, so a large portion of the process will be automated. It will reduce the number of intermediaries and administrative effort.