Tokenization: Giving traditional assets superpowers, Literally!
The financial world is going through a seismic change of great proportions. The status quo is being disrupted by the tokenizations of real-world assets. The way ownership is dealt with is about to change for the better.
Beyond trading and holding, monitoring market volatility, as well as debating the path ahead for crypto versus fiat, something a lot more groundbreaking is taking place; tokenization. It is the representation of real-world assets and the reflection of rights to them on the blockchain via security tokens or tokenized assets. These tokens hold many benefits compared to standard assets & securities. In this article, we are going to cover several of its advantages and also the manner in which it will revolutionize asset purchasing and administration.
The mains benefits are:
Frictionless Transfer of Ownership — Tokenization of real-world assets makes the transfer of ownership immediate. Rather than taking many days to go through other establishments or a bank, it is a straightforward peer-to-peer technology which instantly facilitates transfers.
Access Around the Clock — Just like cryptocurrencies, tokenized assets may be bought and sold at any time, anywhere on the planet, 24 hours a day through instant smart contract technology, while not being forced to wait for the banks or even markets to open.
Fractional Ownership — Each token represents a fraction of an asset’s full value. This reduces investment barriers and also enables anyone to have a fraction of an asset like a property or even a painting, opening up the industry to a much larger number of investors. Additionally, they can stand for the rights to a portion of earnings on an asset’s worth, or maybe the capability of making voting choices within the circumstances of equity in a business.
Greater Liquidity — Tokenization makes possible to unlock the liquidity from illiquid assets that are physically hard and often impossible to divide, or that have lockup periods. Their high value (think real estate or venture capital funds) make them unavailable to everyday folks, as lockup times are extended as well as the minimum property down payments become higher. Tokenization is going to bring liquidity and gives us the ability to purchase or sell a fraction of an asset. Locking the capital, not the investor.
The digital asset markets are going to disrupt, and perhaps annihilate the standard stock exchanges
Emerging businesses use Security Token Offerings (STO) as a method of fundraising backed by tangible assets; they represent an entry point as well as an ownership structure. The simplicity with which tokens may be exchanged over blockchain, internationally, instantaneously, and with reduced transaction costs, can utterly disrupt traditional stock ownership structures and markets. We’re witnessing the growth of a truly global economic market which is entirely internet based.
Wuzu delivers powerful, innovative technology to facilitate the revolution of traditional assets ownership.
Wuzu’s main and unique selling point is the merging of two worlds. On one hand, we’ve built in the function segregation, the system resilience, the transaction speed and the fiduciary structure of traditional Stock Exchanges. On the other, we have the settlement security of blockchain, the 24/7 availability and the lack of geographical barriers of the internet. This allows for people anywhere, anytime, to invest freely. That being said, Wuzu has a lot more to offer, and if you’re interested, you can check it out in detail in this article (it’s a 3 min short read, guaranteed to be worth your time).
The concept of asset ownership is turning into a subsector on the cryptocurrency sector via security tokens, or tokenized securities, which replace stocks, property, along with additional securities for tokens on the blockchain; therefore improving transparency, liquidity, and efficiency. These asset-backed tokens are not limited to blockchain related projects, and could even prove to be a far better way of doing business on stock exchanges if compared with the outdated methods that are used nowadays. It seems fitting that this particular improvement in fintech may even boost fintech itself.
Tokenized assets bring a distinctive range of advantages to the world of purchasing and selling securities. Right from the start, we understand that by the merits on the blockchain, tokenized assets enables us to transact real-world assets ownership from a single spot to another, done digitally throughout the entire process, without any third parties’ assistance, and therefore eliminating the demand for third parties usually concerned with such transactions. This by itself could drastically lower the time and expense of issuing, buying or selling securities. Wuzu is a proud pioneer within the digital asset economy providing assistance in every phase of the tokenization process. We’re prepared to assist companies that wish to take advantage of the benefits of asset tokenization and provide a platform for the acquisition of security tokens to investors. Wuzu and its visionary technology is part of the asset revolution currently taking place. Join the financial revolution with us!
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