What Is Tokenization Of Assets And Why Your Business Needs It
Asset tokenization refers to the replacement of a physical object by a digital record on blockchain. Tokenization facilitates asset liquidity, making for an effective tool for attracting investors to businesses and startups. A vast number of assets can be tokenized and become accessible for trading on exchange: real estate, securities, precious metals, works of art, land etc.
Businesses looking for investment can issue tokens that are represented as an encrypted record in a distributed database on blockchain. Unlike issuing of assets on the traditional stock exchange, business doesn’t require intermediaries: issue and paying agent, depository etc. A company generates tokens and distributes them among investors which provide funds. Token is stored in the wallet and the ownership is protected by a smart-contract.
Benefits of tokenization
The tokenization of business assets is becoming popular due to many advantages:
- Improved management – recording all assets in blockchain guarantees full transparency and accurate accounting;
- Protection of rights – blockchain data cannot be edited without the owner’s permission.
- Market expansion – token is easier and cheaper to distribute and popularize than physical goods or services, bypassing traditional advertising tools.
- Increased liquidity – tokens can be fragmentized, allowing faster and easier selling of assets such as real estate or luxury goods, without dividing the object itself.
Tokenize your business with Binaryx
One of the major activity areas of the Binaryx project is the development and launch of a platform for the tokenization of assets. We want to create a convenient tool that allows street-level entrepreneurs to generate and get their tokens listed on exchange. With Binaryx you will be able to:
- Launch your token or coin;
- Secure tools to configure and manage token operations;
- Attract investors;
- Get a token listed on exchange.