How to manage your investments efficiently with tokenized assets
Asset tokenization is a complete game-changer in blockchain technology that could completely change our view of the financial industry. There are trillions of worth of assets that are unexploitable, and some of them have almost little or no access. Institutional investors largely own markets such as art, real estate, valuable resources, etc., leaving almost no room for retail investors to enter. They are only left with possibly investing in equity markets or debt where there lies high risk and volatility.
This is exactly where Asset tokenization and BlockX shine. Through security tokens also known as STOs, BlockX can enable new markets to be accessible to everyone around the world, offering capital readily available to flow into illiquid markets, thus opening a door full of opportunities. Security tokens and asset tokenization are connected in many ways, which we’ll explore later on.
The main point is that this mechanism allows anyone with the tiniest of capital to obtain capital gains based on their investment’s real-world performance. This removes any barrier towards people who hold the belief that they require large amounts of capital to invest in hard assets like real estate and also relieves them of their dependency on crypto or the stock market.
But first, we must understand what asset tokenization is, how it works, and how it is greatly influencing the financial market and its transformation.
What is Asset Tokenization?
Tokenization is the process where you convert a physical or non-physical asset into a blockchain. Recently the reference and use of blockchain tokenization have gained substantial prominence. Real estate, artwork, stocks, and other tangible assets are finding themselves being converted into digital assets based on blockchain tokenization.
A token, in simple terms, is a representation of any digital asset in distributed form, where the ownership and other rights are sort of engraved into the tokens themselves to grant ownership to its buyer. The possible uses and implementations of tokenization are infinite.
Now we come back to the relation between security tokens and asset tokenization. Well, once an asset is digitized and basically broken into parts called tokens, we then issue an offering or a kind of sale of product where anyone worldwide can acquire these tokens at any time. Blockchain through the use of smart contracts enables such tokens to be created and sold.
Benefits of Asset Tokenization
Since tokenized assets are made using blockchain technology, they have several appealing things to potential investors, and some of them are:
- Immutability — This feature allows investors to buy a token whose ownership is not changeable or erasable by anyone once bought.
- No middlemen — Trades can be conducted without the need of any intermediaries, which more than often slow down the process, thus making it expensive and inefficient.
- Improved liquidity of tangible assets — Blockchain tokens improve the liquidity of real-world assets by distributing ownership into fractions.
- Accessibility and Transparency — Blockchain tokens can be seen and accessed by anyone anywhere in the world, at any time, via any convenient device with an internet connection, thus removing transaction barriers, transparency, and distrust between participants.
- Lower investment risk — Investors can improve their portfolios by potentially owning parts of numerous assets, thus diversifying their investment portfolio.
- Cost-effectiveness and Divisibility — Since digitized assets in the form of tokens fundamentally remove intermediaries, who at many times demand high fees, limit the accessibility of investment to only accredited investors, and sometimes require access to stock trading accounts, this, in turn, reduces cost. Also, since the tokens are divided into fractional parts, they improve liquidity, remove the need for minimum investments, and increase expected value from trade.
Such features disrupt the way we see and manage assets and remove any and all barriers, be it territorial, financial, or institutional. This method can revolutionize the global capital leading to growth and diversification in the market.
Read more about how asset tokenization is unlocking a new type of liquidity.
What can be Tokenized?
From real estate to sports teams to exotic assets like artwork, almost any kind of asset class can be tokenized.
- Physical Goods — Artwork, music, movies, wine, partnership shares, and many more can be tokenized into providing price discovery through blockchain-enabled transparency, history, and source of origin of assets such as art and their lending.
- Real Estate — This type of tokenization gives part ownerships which allow increased participation and high capital in the market. This offers an opportunity for expansion for markets involving real estate investment.
- Private Equity Shares — Asset tokenization of equity shares provides companies to provide information on an immutable individual ledger shared to shareholders in order to interact with them. This removes the existing error-prone and inefficient method of storing, transferring, and managing database records about shareholders and shares information.
Commodities — By converting physical, tangible assets into digital tradable assets allow more liquidity and removes entry barriers in asset classes currently in place due to individual investors representing institutions. This, in turn, opens new market opportunities involving the trading lifecycle and sourcing of commodities.
Using Asset Tokenization through BlockX
BlockX allows you to digitize your assets and turn them into blockchain tokens through security and utility tokens. Currently, there are very few options available to people who want to deploy their capital without expensive fees and delays in transference and whatnot.
Therefore it is absolutely essential to providing access to such asset classes to anyone in the world who wishes to invest in digital as well as tangible assets such as real estate and art without the hindrance of institutional investors & other conventional limitations.
BlockX offers precisely this solution. It is driving asset tokenization and capital markets by providing low latency transactions with low gas fees, multiple tokens, NFTs, and multi-chain support, along with EVM compatible smart contracts and assets that are easily deployable.
In other words, BlockX delivers options to:
- View and manage your entire portfolio of investments into a single account.
- Receive dividends and payments on the same account.
- Take advantage of DeFi protocols such as yield farming using traditional alternative assets.
- Issue and manage all kinds of Digital Assets: Securities, NFTs and stablecoin.
- Enable cross-border payment at low latency and fast transactions.
Get started on your asset tokenization journey now. BlockX token sale is live!
The pre-sale of the BCX token is now live and ongoing till the 7th of October with up to 30% BONUS based on your total investment + BONUS AMOUNT (only Pre-Sale).
- An initial investment of $15,000, on top of a 30% Sale Bonus will be applied + a special price of $0.10 per BCX
- An initial investment of $100,000, on top of a 30% Sale Bonus will be applied + a special price of $0.08 per BCX.