How can tokenization platform development be key to earning big bucks in the blockchain space?
What if someone told you that almost everything could be tokenized in the next few years? You would have thought that it was insane. But guess what? With blockchains, the tokenization of assets has reached crazy new heights. The market value of the tokenization of illiquid assets is expected to reach $16 trillion by 2030. Tokenizing real-world assets makes them more tradable and creates high liquidity. Due to these unique features, millions around the world have started to tokenize their assets. But from a business perspective, how do you capitalize on this promising market? This is where tokenization platform development comes into the picture. So, what is a tokenization platform? How to create your own platform for tokenization?
What is tokenization?
Tokenization fragments tangible assets into digital tokens that investors can purchase and own. These digital tokens have the innate value of their physical versions, which is likely to increase with time. For example, if you have an asset valued at $50000, you can fragment it into 5000 tokens and sell them to investors at $100 each. You can sell these tokens online without any geographical restrictions.
Different types of tokenization
Real estate tokenization: As the name suggests, this type of tokenization is associated with the real estate business. It enables users to tokenize their real estates properties, like land and buildings, and sell them online. Blockchain technology is also used in the documentation process, which makes it more efficient and simpler.
Art tokenization: For a long time, the art industry was limited to a niche community and could not penetrate the common audience. But with art tokenization, artists can create a diverse investment portfolio. It allows independent artists to reach their patrons directly without auctions or galleries.
Stablecoins: Tokenization of financial assets like bullion, precious stones, or even fiat money into stablecoins.
Advantages of Asset tokenization
Asset Liquidity: Asset tokenization offers enhanced liquidity for illiquid assets.
No intermediaries: Since all transactions are done with smart contracts, tokenization eliminates the need for any intermediaries in the process.
High accessibility: One of the major advantages of asset tokenization is that it enables assets to be fragmented into smaller tokens, which encourages small investors to get their hands on such tokens. This paves the way for a wider reach to investors and cuts the minimum investment period.
Immutable: With blockchain technology, information and data cannot be forged, deleted, or changed. So users are assured that asset information and transaction records are accurate, as they can be accessed and verified on the blockchain.
Transparent: Token owner’s rights and ownership records are embedded in the smart contracts. Therefore, users can know who they are dealing with, who has purchased their tokens, and their powers with them.
Swift transactions: As all the transactions are executed with smart contracts, most of the process is automated, cutting down intermediaries, which results in cost-effective and quick transactions.
Industries embracing tokenization
Finance: Blockchain is shaping the future of the fintech industry. It offers financial organizations the to turn their assets into cryptos. This increases their liquidity in the market and reduces security risks.
Real estate: Real estate tokenization makes the investment process straightforward. Without intermediaries, it enables the buyers and sellers to communicate directly. It also allows small investors to invest in real estate properties by purchasing tokens.
Sports: In the sports industry, club trades, jerseys, and sports equipment are tokenized. This provides sports clubs with financial support.
Art: Art tokenization has made artworks more accessible to the general public. It enables creators to tokenize their artworks and sell them without intermediaries.
Healthcare: With tokenization, users can tokenize sensitive patient data into non-sensitive unique values. This reduces data breaches, and this patient data can be shared with insurance companies and medical professionals easily.
To wrap it up, the concept of asset tokenization is such a unique and intriguing concept that it is sure to revolutionize the future of many industries. The global market for tokenization is expected to grow from $1.9 billion to $4.8 billion in the next 3 years, at a CAGR of 19.5%. Sensing this potential, many companies from various industries have started to look at asset tokenization as a promising investment opportunity. Therefore, the demand and success rates of tokenization platforms have skyrocketed. If you’re looking to develop your own asset tokenization platform, you could be in great luck, as it can be one of the best investment choices you can make in the crypto space. So, why stand on the fence? Hire a professional asset tokenization development company for your project and reach new heights with your business.
