What’s the Deal with Asset Tokenization!

Cryptocurrency and Blockchain took the world by storm. Not just cause of its popularity, but rather the idea behind its creation. Cryptocurrencies were introduced as a virtual digital currency free from any traditional institutions control. And Blockchain offered stellar security features where information was stored away in blocks, a move that has made hackers around the world sweat.

Even though ICOs had a good run, it's charm seems to be fading now. This would largely be due to numerous frauds and scam projects that have made investors and crypto-enthusiasts question its very existence.

To counter this STOs joined the game. They offer a more secure way to raise the necessary funds for a project.

There are three types of Security token Offering:

• Equity Token
• Asset Tokenization
• Debt Token

Let's talk about asset tokenization. In simple words, real-world assets are tokenized and later exchanged in dedicated crypto-exchange for other cryptocurrencies or fiat.

The Asset-Backed Tokenization offers:

• More compliance
• Involvement of fund managers and institutional investors
• Easy liquidity of illiquid assets
• High transparency
• More Efficiency
• Highly Scalable
• Reduction of Spread Charges

Types of asset tokenization include:

• Real Estate Tokenization
• Art Tokenization
• Stable Coins
• VC Fund Tokenization
• Illiquid Asset Tokenization
• Mining Repository Tokenization

With tokenizing your assets, you can eliminate multiple intermediaries since your trust would only be upon the issuer.

Some of the middlemen you eliminate with purchasing tokenized assets include:

• Registrars
• Brokers
• Numerous Custodians
• Agents for transfer
• And many more

If you are planning on tokenizing your assets, then you should get in touch with Blockchain App Factory. They offer world class-leading asset tokenization service to help you tokenize your illiquid assets in no-time.