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How tokenization is transforming real-world assets on the blockchain

Our world is full of untapped real-world assets. From real estate, gold reserves, fine art to agriculture, tangible items have been difficult to subdivide or physically transfer. So investors have traded these assets on paper, which is slow, complicated and expensive. These trades are also more difficult to track due to the regulatory nature of paper transactions, especially when it involves cross-border legislation.

FinTech Weekly
Aug 8, 2018 · 4 min read
  • Tokens enhance the liquidity of previously hard assets with real estate being the prime example, with its low liquidity and large share of the global asset market.
  • Asset tokenization reduces barriers and will attract new investors through fractional ownership, as they can own a percentage of a real-world asset and repackage it with traditional bonds or hedge funds to resell in crypto marketplaces.
  • Tokenization increases portfolio diversification and spreads risk as investors can now co-own multiple assets at once.
  • Tokenization is a seamless process and speeds up previously difficult and costly trades by reducing administrative expenses through self-authorizing smart contracts, improving the speed of settlements.

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Fintech Weekly Magazine

Insights into where finance meets technology - from…

FinTech Weekly

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FinTech Weekly is a news service for the FS industry. Our newsletter comes out weekly, wrapping up the most important insights and strategies from the past week

Fintech Weekly Magazine

Insights into where finance meets technology - from experts, for experts.

FinTech Weekly

Written by

FinTech Weekly is a news service for the FS industry. Our newsletter comes out weekly, wrapping up the most important insights and strategies from the past week

Fintech Weekly Magazine

Insights into where finance meets technology - from experts, for experts.

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