Tokenization of assets turns traditional financial instruments into digital tokens. This innovation increases accessibility and transparency.
Anatomy of Tokenized Asset Issuance
The tokenization process begins with the legal structuring of the asset, followed by the creation of tokens recorded on the blockchain. Smart contracts automate management and reduce costs. The primary token offering is akin to an IPO, offering investors instant access to their portfolio.
Revolutionizing Asset Classes through Tokenization
Tokenization covers a wide range of assets, including real estate and debt instruments. For example, the European Investment Bank issued digital bonds on Ethereum blockchain, marking a shift in financial tools and liquidity through digitization.
Looking Ahead for Tokenization Adoption
Tokenization is solidifying its role as a key technology in financial markets, expanding investment access and improving liquidity. Increased adoption across asset classes is expected by 2025.
Tokenization is actively reshaping the perception of traditional assets, creating new opportunities for institutional and retail investors.
