Real World Asset (RWA) tokenization is the process of converting rights to a physical or intangible object into a digital token on a blockchain. These assets can include everything from real estate, art, and collectibles, to startup funding, equipment, and various debt instruments.
Yes, with tokenization, assets can be offered to a global pool of investors, potentially expanding the investor base beyond traditional markets.
Tokenization can increase the liquidity of your assets by allowing them to be divided into smaller, more affordable units. This opens up the asset to a larger pool of potential investors, making the asset more readily accessible and easier to buy and sell.
Fractional ownership allows for assets to be divided into smaller units or tokens, enabling investors to buy a fraction of a high-value asset. This can democratize access to investment opportunities previously only available to wealthy individuals or institutional investors.
The immutability of blockchain records can provide a transparent and trustworthy record of ownership, enhancing investor confidence. All transactions related to an asset are recorded on the blockchain, creating a transparent, immutable ledger that can reduce the risk of fraud.
Through smart contracts, tokenization can automate aspects of the asset management process, including dividends and other profit-sharing mechanisms. This can reduce administrative effort and costs, and increase the speed of transactions.