Tokenization is the process of representing assets on blockchain. Tokenized assets exist in the form of tokens controlled by smart contracts, which are programs that automatically run on blockchain. It is possible to tokenize any real-world assets and securities, such as real estate, private equities, funds, debt, and more.
The main benefits of tokenization include fractionalized ownership to target a broader investor base; fully digital experience to easily onboard investors; reduced costs as smart contracts automate processes and compliance validation; and most importantly, increased liquidity to allow investors to conduct compliant peer-to-peer transactions and to access a distribution network.
Tokenization is transforming the industry and the adoption is accelerating rapidly. Institutional players and investors are moving into the space. BCG estimates that the tokenization industry will reach $16 trillion by 2030. According to BNY Mellon’s survey, 97% of institutional investors agree that tokenization will revolutionize asset management, while 70% of institutional investors are willing to pay extra for increased liquidity and faster asset turnover.
Our role at Tokeny is to assist companies who want to leverage tokenization and accelerate their time to market by providing the complete tokenization tech stack, from issuance to the secondary market.
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