Tokenization of digital assets isn’t new in the world of blockchain. Originally, tokenisation meant the process of converting something of value into a digital token usable on a blockchain application. Digital infrastructure where people can host assets that can be owned, transferred, and exchanged between people already exists.
But the trend of asset tokenisation is no longer restricted to the digital world. We are now seeing tokenisation of real-world assets (RWA), on the back of a slew of benefits. These include access to illiquid assets and more stable yields as compared to highly volatile DeFi returns affected by changes in the crypto world.
But beyond these benefits, the overall advantage is that this may be the catalyst for mainstream crypto adoption. Most believe tokenisation of RWAs that represent physical and traditional financial assets is the bridge between blockchain and the real world.
The trend has slowly grabbed the spotlight. According to Boston Consulting Group (BCG), tokenisation of global illiquid assets could become a $16 trillion industry by 2030. A BNY Mellon survey further reported that 97% of institutional investors believe tokenisation will revolutionize asset management and 91% want to invest in tokenised products.
This makes it essential for companies to work with leaders in the sector. Antier, a leader in the blockchain industry and renowned as a DeFi development company for DeFi asset tokenisation, has been developing enterprise blockchain, providing tangible solutions for asset tokenisation, including that of RWAs.
Spotlighting tokenisation of RWAs
RWAs include regulated financial instruments like equities, bonds, investment funds, loans, and others. They can also include commodities such as gold, silver, real estate, along with other precious metals, artworks, or sports teams.
Many of these assets are difficult to transfer or divide physically, and legal paperwork can be complex and cumbersome. To that end, switching to a digital system like bitcoin is a better option. Tokenisation of RWAs helps users get faster settlement, liquidity, automated compliance, and new forms of credit and investment opportunities.
Tokenisation can reduce barriers to entry for real estate investment, allowing smaller investors to participate. When it comes to artworks, fractional ownership provides a way for investors to own a piece of valuable art without having to purchase it entirely. Similarly, fractional ownership can allow more flexible licensing arrangements when it comes to tokenised intellectual property rights, such as patents or copyrights.
For asset managers, the path could open up new distribution possibilities for investment funds. Tokenising debt instruments, such as bonds or loans, can create a more liquid market and help in efficient transfer of ownership.
The benefits include:
- Liquidity: Fractional ownership makes it easier for users to buy and sell their stakes in assets. This leads to increased liquidity, and makes it possible for more investors to invest.
- Reduced costs: Unlike traditional asset trading, users do not have to deal with broker or administrative fees.
- Transparency: There is a transparent record of ownership that sheds light on the transaction history of the asset, increasing transparency and accountability.
- Security: The security of transactions of blockchain reduces the risk of fraud.
- Global access: This opens up the investor base, and can help diversify investment portfolios.
The Antier impact
It is no secret that asset tokenisation can bring huge changes across many industries through greater efficiency, accessibility, and liquidity.
More real-world use cases for asset tokenisation will be developed soon, and Antier expects to be at the forefront of the wave. As a leading blockchain development company, Antier provides customers and businesses with a hassle-free tokenisation solution for RWAs by providing a reliable platform.
How does Antier help?
Finalizing deal for smart contracts: The team lays down ground rules for current and future investors before tokenisation is carried out.
Digitisation of asset: The traditional information of the asset deal is stored on blockchain in smart contracts and security tokens are issued.
Technology selection: This is a critical aspect for RWA tokenisation. The team decides this with customers – from the platform’s features to choosing the right blockchain for tokens.
Distribution of token: Once smart contracts are developed and rolled out, token creation and distribution is carried out.
Post-tokenisation Support: Antier deals with legal issues, activity tracking, and more.
For a reliable tokenisation platform, please contact Antier here: https://www.antiersolutions.com/
