Asset tokenization is the process of converting any type of asset, whether physical or intangible, into a digital token that represents its value and rights on a platform based on distributed ledger technology (TRD) or blockchain. This technology allows the creation, exchange, storage and management of assets in a more efficient, transparent, secure and accessible way.
Novel assets are those that have not been tokenized before, or that have unique or innovative features that make them attractive to investors and users. Some examples of novel assets are art, music, video games, sports, education, health, environment, identity, reputation, data, social networks, experiences, emotions, etc.
The tokenization of novel assets offers multiple advantages, both for the owners and consumers of these assets. Among them, the following can be highlighted:
- The democratization of access to assets, by reducing entry barriers, transaction costs and intermediaries, and by allowing the fractionation and liquidity of assets.
- The protection of intellectual property rights, by guaranteeing the authenticity, traceability and immutability of tokens, and by facilitating the payment of royalties and licenses.
- The creation of new business models, by enabling monetization, crowdfunding, patronage, rental, loan, gift, donation, collaborative consumption, gamification, personalization, interaction and customer participation. assets.
- The generation of social and environmental value, by encouraging the creation, dissemination, preservation, education, inclusion, diversity, solidarity, sustainability, responsibility and transparency of assets.
However, the tokenization of novel assets also poses a number of challenges and risks, both for the token ecosystem and the legal and regulatory system. Some of these challenges and risks are:
- The lack of standardization and compatibility of tokens, which can generate confusion, fragmentation, incompatibility and loss of value for users and investors.
- Vulnerability to cyber attacks, technical failures, human errors, fraud, theft, loss, non-compliance and manipulation of tokens, which may compromise the security, privacy and integrity of the assets.
- Legal and regulatory uncertainty, which may hinder the definition, classification, valuation, taxation, supervision and protection of the rights and obligations of issuers, service providers, users and investors of tokens.
- Resistance to change and lack of trust, which can hinder the adoption, acceptance, diffusion and innovation of tokens, especially by traditional market players.
Against this backdrop, a clear, balanced legal and regulatory framework adapted to the characteristics and needs of tokens is necessary, which guarantees consumer protection, prevention of money laundering, fair competition and responsible innovation. Furthermore, it is important that issuers, service providers, users and investors of tokens are informed and educated about the benefits and risks of these assets, and that they exercise due diligence when creating, choosing and using them. a token.
The tokenization of novel assets is a financial revolution that opens a world of possibilities for economic, social and environmental development and inclusion, but also a challenge and risk for the established order. Its future will depend on the capacity for adaptation, collaboration and supervision of all actors involved in the token ecosystem and the legal and regulatory system.