Asset Tokenization
Asset tokenization is the process of converting ownership of a Real-World-Asset into digital tokens that can be traded on a blockchain. By tokenizing an asset, ownership can be divided into smaller, more easily tradable units, which can open up new opportunities for investors and increase liquidity in markets.
Why Tokenization
Tokenization allows for the fractional ownership of assets, which makes it easier for individuals to invest in assets that were previously inaccessible due to high costs or legal restrictions. For example, real estate or art assets can be tokenized, and investors can purchase a fractional ownership in these assets, allowing them to diversify their portfolio and potentially earn passive income through rental or leasing.
Additionally, tokenization can improve the efficiency of asset trading by removing intermediaries and reducing transaction costs. The use of blockchain technology also provides greater transparency and security by recording all transactions on a decentralized ledger.
Overall, asset tokenization has the potential to democratize investing and provide greater access to previously exclusive markets, while also improving the efficiency and transparency of asset trading.
