Everything You Wanted to Know About Asset Tokenization Platforms
Asset Tokenization is a process of converting physical as well as digital assets into the blockchain. Blockchain creates an immutable public ledger that ensures that nobody can delete the ownership of an asset once created. This feature enables tokenization to offer faster settlements at a low cost and increased liquidity.
In recent times, tokenization-based blockchain technology is finding applications in real estate, stocks, artworks, etc.
Asset Tokenization Platforms
In simple terms, they are the companies that convert assets into digital tokens on a blockchain. Today it is possible to tokenize any type of asset such as real estate, artworks, music, venture capital funds, intellectual properties, sports teams, etc. These platforms are frequently used by financial institutions and investors as they provide countless benefits.
Tokenization reduces the cost of issuance and trading. It eliminates the role of intermediaries in transactions. More importantly, it creates easy liquidity and provides transparency to all parties.
Asset tokenization platforms digitize your asset by breaking it down into three categories
- Intangibles: This includes copyrights, intellectual properties (patents), carbon credits, etc.
- Fungible Assets: These assets can be traded with other commodities like gold.
- Non-Fungible Assets: These assets hold a unique value. They are unique in themselves and cannot be exchanged.
Asset Tokenization Platforms have several features to create legally compliant tokens. They use blockchain technology extensively. They assist with the evaluation and pricing of the assets.
These companies provide several services to the token issuers such as built-in contracts, fund management dashboard, global KYC, Investor verification, security management, etc. They also help issuers in their fundraising campaigns and also provide investor verification services.
These companies also make sure the tokens are compliant in both issuer and investor’s jurisdiction.
Aset Tokenization Platforms
Some of the best Asset Tokenization Platforms in the world are as follow:
Polymath was founded in 2017 in Toronto, Canada. This company allows users to issue tokens that have similar properties with financial securities. They have pioneered a process of tokenization which they call “security token standard”. This process is used to create, manage, and trade security tokens. They also provide the service of fundraising for projects and secondary market trading of tokens.
Polymath is currently working on launching Polymesh. It is a blockchain specially designed for security tokens as the regulatory requirements are inbuilt in the blockchain.
TokenSoft was founded in 2017 in San Francisco, USA. It is a white-labeled asset tokenization platform which means it is a company that provides customized end-to-end tokenization to issuers. This company allows its user to customize compliance requirements for both assets and securities.
The users can tokenize real estate, debt, equity, etc. They also launched the first registered (SEC) security on the blockchain. They offer the facility of cold wallets to their users.
Securitize was founded in 2017 in San Francisco, USA. It is also a white-labeled company. Securitize provide both primary and secondary market for trading tokens. Once tokens are issued, they can be listed on Securitized Markets. Securitized Markets is an alternative trading system (ATS).
Users at Securitize can use a range of programs such as Mini-IPO, Reg.D, etc to raise capital. It also offers a compliance platform with several features for managing digital securities.
4. Tokeny Solutions
Tokeny Solutions provides a platform called “T-Rex” for issuing, managing, and trading tokenized assets. T-Rex can be used by both parties (issuer and investor) for effective communication. It comes with several features such as investor onboarding, compliance enforcement, and token recovery processes.
This company also provides a blockchain-based identity system for the correct identifications of investors and organizations. This system also helps in the token recovery process in case an investor loses access key to his wallet.
ADDX is a Singapore-based asset tokenization platform that helps companies raise capital by creating digital securities. Once the tokens are issued, they can be listed at the ADDX marketplace where they will available for investors.
Bitbond was founded in 2013 in Berlin, Germany. This company provides services for bank-grade tokenization and digital assets technology. It is a white-labeled company that is mostly used by banks for issuing tokenized bonds. The majority of the clients are banks, large issuers, and financial intermediaries.
Their solutions allow low-cost tokenization of assets which gives their clients a competitive edge.
If you want to learn more about Asset Tokenization and the platforms that can facilitate that for you, here are some recommended resources: