What is Tokenization?
Tokenization is the process of converting rights of an asset into a token that can be subdivided, traded and stored on a digital leger. Tokenization simply converts the value of an asset, tangible or intangible, into a token that can be manipulated on a blockchain
By combining the advantages of blockchain and classical investment instruments, tokenization can have incredible effects on trading and investments across borders. The benefits of tokenization are various and can be summarised as follows:
- Improves liquidity of assets like real estate and allows fractional ownership
- Acknowledge the diversification of risk by owning parts of several assets
- Diminishes territorial barriers
- Allows newer models for raising capital and unlocks liquidity premium
- Allows more control and decreases the number of intermediaries, and therefore the amount of fees
EXAMPLES OF ASSET TOKENIZATION…
Make your real estate investments accessible, digital and global through a legally compliant token structure. Users can buy fractions of properties, earn income on those properties, then, as with traditional real estate investments, sell their fractions at higher prices depending on the appreciated values of the underlying property.
ICOsoft platform reduces entry and transactions costs, easier access to investment opportunities around the world, and a means to diversify investment portfolios. Real estate owners will find increased liquidity from fiat and cryptocurrency investors.
Invest securely and directly in asset-backed tokens such as gold, silver, and diamonds.
How does it work?
Tokens will be assigned gold/silver or diamonds via smart contracts, meaning that each piece of gold/silver or diamond will be accounted for, from mining to storage. Blockchain technology provides an easy, safe and simple way to transact in an efficient, anonymous and high-frequency manner.