
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.
Read our Tokenization Guide for Business >>
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.