Introduction The Decentralized Finance (DeFi) Revolution is taking over traditional finance (TradFi) and centralized exchanges (CEX), with billions in...
Asset tokenization is when an issuer creates digital tokens on a distributed ledger or blockchain, representing either digital or physical assets. Furthermore, there is no single power to erase or tamper the ownership within the blockchain. As such, many companies would benefit from asset tokenization.
How Does Asset Tokenization Work?
Asset tokenization is the process of turning a physical asset, such as property or gold, into a digital form. This makes it easier to transfer, as well as divide the asset, among owning parties. For example, someone who owned a piece of real estate worth 1 million dollars may want to tokenize their asset to gather some fast capital. But it’s hard to find someone who has a million dollars to spend on an asset like a home. But when the asset is tokenized, it can be split into multiple pieces and offered to a few different investors.
The process of turning an asset into a token is not as simple as it seems. Asset tokenization requires a vast knowledge of legal, blockchain, and tech. As such, it is important to seek a professional that can help you build this.
Why Should You Tokenize Your Assets?
Of course, this is all starting to sound a bit complicated. But there are so many benefits to asset tokenization. As the world is becoming more digitized, it is important for businesses not to get left behind. There are various benefits for asset tokenization, and we will cover a few of them here.
First of all, asset tokenization allows higher liquidity by allowing fractioning of assets. This reduces entry barriers to investments allowing more people to invest in the asset.
Additionally, asset tokenization reduces cost. This is due to the nature of how blockchain works. Your asset can be transferred to anyone worldwide who owns a blockchain wallet, and the transfer fees are minimal. You no longer have to pay for brokers, registrars, and transfer agents.
It also should be mentioned that asset tokenization removes many barriers in the financial industry, such as banking hours and international borders. No longer will you have to get up early to make a bank deposit across the globe as transactions can happen on the blockchain 24/7, 365 days a year. And if you run a business with employees on other sides of international borders, this will take a huge pressure off when it comes to worrying about time zones to do business.
Any Companies that have Successfully Tokenized Assets?
You are probably wondering if there are companies that have already successfully tokenized assets. One of the more famous ones is a car company, BitCar, which allows investors to purchase fractions of luxury cars that are subsequently rented out for rides. And if this process can work for luxury car rental, you can be assured it will work for any other asset you may have in mind.
How Can You Find A Company Which Offers Asset Tokenization As A Service?
You’re ready to take the plunge and transform your business with the power of asset tokenization. But you don’t have the technological know-how to do so on your own. And this is okay because numerous companies offer asset tokenization as a service.
When a company offers asset tokenization as a service, this means they will help you with the entire process of taking your asset to the blockchain for a small fee. They will also usually offer a maintenance package to help keep your asset secure and running smoothly for years to come.
You want to look at some features when searching for a company to manage your asset tokenization. As mentioned above, you want to find a company that will be with you for every step of the process—as it can often be a bit confusing for someone unfamiliar with the technology. But you also want to look at their turnaround time. Because the last thing you want to do is invest money in a company for them to take years to tokenize your asset. This brings up another factor you have to consider, cost. You’ll want to make sure you get your money’s worth so you can make the most of the asset you are tokenizing.
One company that meets all of these requirements is Stably. Not only is Stably one of the top companies in the business, but they also offer price matching, which makes their services remarkably affordable. They guarantee quick turnaround times for basic asset tokenization, from as little as 3-4 weeks. So you can rest assured that you will have your asset appropriately tokenized and quickly! And best of all, their asset tokenization is compliant with all necessary regulations.
If you need an asset tokenized and think Stably might be the company to get you there, contact them today at stably.io/contact.
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