10 Business Cases for Tokenization of Assets

“Startups and major financial companies around the world are now racing to develop systems for the next phase of this evolution: tokenizing assets. “- NASDAQ

Tokenization of assets is disrupting the financial industry. Blockchain and Distributed Ledger Technologies (DLT) have captured the attention of many, thanks to their potential to deliver new and better infrastructures for the improvement and digitalization of the capital markets.

Companies taking advantage of the token economy are building bridges between real-world businesses and global digital investors. Through digital securities, cross-border investments are becoming more fluent, and financial participants are securely opening their portfolio and operational systems to broader schemes.

Technology is rapidly evolving towards DLT, a potent enabler of both investment experience and effective operations. Now that digital interactions have become the norm, financial activities are starting to keep pace. Institutional investors are turning towards digital assets, evaluating the great potential to respond to acute liquidity challenges.

Moving towards a token economy implies an ever-closer integration of production activities, including upstream and downstream processes (sourcing, distribution, etc.) with digital payments and enforcement of contracts in an automated manner. Applied correctly, it can solve structural solvency problems, efficiency, and access to markets. And, this is the crucial and most critical point of this disruptive technology.

Although many think that all its benefits are reserved for the traditional participants of the financial markets, embracing this technology-based economic system offer a broader picture: the democratization of investment and liquidity increase.

Through digital assets, the investment can be liberated, bringing more participants and more capital to different business models, that otherwise, would have remained unfunded and unlocked.

Hence, there is not a limit on what can be tokenized, as long as the process ensures secure investment and custody of the underlying assets or financial instruments.

Currently, several commercial cases are demonstrating the potential that tokenizing…