[…] Tokenization potential of $68 trillion by 2030 in best-case scenario.”
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The Tokenizer expects to launch at least three new services and projects during 2024:
All current and future services from The Tokenizer belong to one of The Tokenizer’s five core categories as described in the model to the right on this page.
In principle, any asset can be tokenized – equity, debt, collectibles, music, art, real estate and all kinds of real-world assets
One asset class with a massive potential is private, non-listed companies. But why would you chose to tokenizer your company?
First, tokenization is a proces of representing assets in the form of pieces of computer codes called tokens. In principle, all kinds of assets can be tokenized.
Tokenizing a company typically means representing the rights of the shares of the company in the form of regulated security tokens.
These security tokens are controlled by so-called smart contracts, recorded on a blockchain, and tradeable via exchanges or peer to peer between investors.
Investment funds such as:
are all possible candidates for tokenization.
Tokenizing funds is already possible today, and to a large extent, this resembles the process of any other security token offering.
According to the latest accessible numbers, there are 14,089 Private Equity funds, Hedge Funds & Investment Vehicles businesses in the US alone as of 2023, which is an increase of 2.4% from 2022.
What are the advantages?
Tokenization increases liquidity because shares in the tokenized fund are represented by regulated security tokens (which are pieces of computer codes on a blockchain managed by smart contracts) that can be traded 24/7 on any security token exchange in the world – or even peer-to-peer between digital wallets.
Investing in traditional funds is typically reserved for ver wealthy investors due to large investment tickets. Tokenization allows for easy fractionalisation of asset units and ticket sizes, enabling a much broader range of investors.
The use of smart contracts on a blockchain enables transparent real-time traction of all transitions and an always updated cap table. Costly constant reconciliation between involved parties is no longer needed because all transactions are recorded and distributed on a blockchain.
KYC and AML checks can be coded into the smart contracts removing the need for manually checking whenever a transaction is made. Also, smart contracts can ensure that only compliant investors can participate in the investment fund.
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