By 2030, the market for tokenized assets could reach $16 trillion. Traditional assets such as stocks, real estate and loans are becoming digital and more accessible. Today we'll look at how it works.
Stocks, fixed or variable income loans, and real assets are three types of assets that can be tokenized in various ways.
Main methods of asset tokenization:
1. Tokenization of shares:
Tokens can be programmed to automatically pay dividends and exercise other shareholder rights through smart contracts.
2. Tokenization of loans:
Tokens represent a share of a loan or the right to receive payments, making them easier to exchange and transfer between investors.
3. Tokenization of real assets:
There are three main methods for tokenizing real assets:
- Single-Owner:
Each physical asset is converted into a unique NFT, representing exclusive ownership of the real object.
- Multiple-Owners:
Multi-owner asset tokenization involves dividing each individual asset into multiple shares, each of which is represented by a fungible token or share of the actual NFT asset.
- Fund-Based:
The fund-based tokenization approach involves creating a pool or fund of different assets and then issuing fungible tokens that represent the value of the fund's portfolio.
New technologies are making finance accessible to everyone, allowing ordinary people to acquire shares in companies or other valuable assets. This transition not only changes the approach to owning stocks, real estate and loans, but also opens the door for anyone who wants to start investing.