Tokenization of Alternative Assets
Written by: Agata Blichewicz
When we think about tokenization of assets the first thing that comes to our mind is the real estate sector. Indeed the biggest interest we are experiencing at DigiShares comes from this field. Till recently investors in this sector had to invest big amounts, especially when they wanted to get an attractive ROI. Nowadays, thanks to the blockchain technology and our security tokens’ issuance platform, investing in real estate becomes more and more accessible to retail investors allowing them to buy even for a little amount of money a fraction of e.g. a big development project.
However, there are many other alternative kinds of investments we’re exploring and working on. The real estate model can be easily transferred to the energy sector. Our tokenization platform can facilitate funding not only of a solar or a wind farm but also e.g. of a biogas or a biomass plant. The holders of such digital shares will be receiving a dividend that reflects the share in the revenue of the energy company which is generated thanks to the tokenized investment project.
When you think big you can also use tokenization to fund big state or public infrastructure projects like e.g. a clinic, a school, a bridge, a highway, heating or telecommunication facilities, pipelines, railways, IT or water infrastructure. The token holders will earn dividends either on the revenue a project gets from end users or on the lease paid by the (local) authorities. Infrastructure long term tends to be less volatile than e.g. equities and provides higher yields.
There’s been also a growing interest in the mining industry. Our solution can help collect funds to open a new mine or tokenize already mined precious metals or diamonds. The investors of such projects will be holding tokens backed by the value of the mined minerals and will be able to trade them accordingly to their value changes.
One of the alternative investments that has been recently booming is fine art. On a daily basis, we hear about a new auction record and the highest price ever paid for different pieces of art. Thanks to our tokenization platform fine art investors will not have to go out of the house and spend lots of money on a complete piece of art. They will have the opportunity to own fractions of many of them. It will spare them the necessity and costs of keeping it safe, putting all their money in one asset vs. diversification, and will give them the access to the most known and valuable pieces of art.
Another great example is the marine shipping sector which carries out most of the world trade flows. In order to buy new vessels and expand their fleets, shippers borrow huge amounts of money. Investors who are not afraid of volatility may be rewarded with attractive dividends if they go for companies that lease their ships to customers at the going market rate, the spot market. Those who prefer lower but more stable and predictable ROI may choose to invest in shipping companies that offer their clients long-term agreements with a fixed price. Tokenization will help shipping companies fund their new vessels in a cheaper, quicker, and more efficient way and will bring them a new stream of retail investors.
If you find these alternative assets relevant to you, or you thought of others that could be tokenized, contact us to arrange an introductory call.
About DigiShares
DigiShares provides white label solutions for security token issuance and corporate management. We work with asset managers, investment fund managers, real estate developers, renewables project developers, etc. who are interested in more efficient ways of raising capital and managing many investors in their fund or project. We offer high-quality functionality for tokenization to enable investors to register and be verified, purchase tokens, and for the longer-term management of the group of tokenized investors, the platform will maintain an investor register, facilitate communication with investors, votes, shareholder meetings, etc. As a special feature, we offer an internal exchange where existing and new investors can trade their shares within a single project.
DigiShares’ platform is a so-called multi-STO platform, enabling an asset manager to raise funds for and manage the investors in multiple STOs (Security Token Offerings). It contains dashboards for the overall administrator of the platform, for the administrator of each individual STO, and for the investors in the STOs.
DigiShares is your trusted partner to ensure that your digital assets will be compliant and liquid.
DigiShares is conducting its own STO, raising capital for future expansion. If you want a stake in the growing security token ecosystem (~59% CAGR), one way would be to invest in DigiShares. Contact us for more info or visit http://www.digishares.io/sto
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