Turning assets into tokens. The rise of RWA tokenisation.
"RWA tokenisation" refers to the process of converting real-world assets (RWAs) into digital tokens on a blockchain.
These tokens represent ownership or a claim to the underlying assets, which can range from real estate and art to commodities and intellectual property. The process of tokenisation involves dividing the asset into smaller, tradable units, making it easier and more cost-efficient to buy, sell, and trade digitally. This is facilitated by the blockchain , which ensures transparency, security, and an immutable audit trail of records.
Here are three real-world examples of Real world assets being tokenised
Real Estate:
Example: A commercial building or residential property is tokenised on a blockchain platform.
How it works: The total value of the property is divided into multiple tokens, each representing a fractional ownership stake in the property. Investors can buy these tokens, effectively owning a part of the property. This lowers the barrier to entry for investors, as they can invest smaller amounts of money compared to buying an entire property.
Benefits: Increased liquidity, lower transaction costs, and the ability to trade ownership stakes 24/7 on digital exchanges.
Art Tokenisation:
Example: A valuable painting or sculpture.
How it works: Similar to real estate, the artwork is assessed for its value, and this value is then divided into many digital tokens. These tokens are sold to investors, giving them partial ownership of the art piece.
Benefits: Artists and galleries can raise funds more directly and efficiently while enabling investors to purchase shares in valuable artworks, which they might not be able to afford outright. Token holders can potentially earn returns if the value of the art increases.
Commodity Tokenisation:
Example: Precious metals like gold or silver.
How it works: Each token corresponds to a specific quantity of the metal stored securely in a vault. The tokens can be bought and sold on blockchain platforms, representing actual ownership of the metal.
Benefits: Tokenisation of commodities like gold simplifies trading and storage, reduces risks associated with physical handling, and makes it easier to divide ownership into smaller, more affordable units.
RWA tokenisation shows its potential to democratise access to investment in various asset classes, making it possible for more people to participate in markets previously dominated by large investors or specialised firms.
Would you be interested in RWA tokenisation?
Nabil Hadi Ollie Bell Ollie Holt Tom Downing Dan Strode
#rwa #tokenisation #emergingtechnology
