What is asset tokenization?
Asset tokenization refers to the process of recording the rights to a given asset into a digital token that can be held, sold, and traded on a blockchain. The resulting tokens represent a stake of ownership in the underlying asset.
Asset tokenization process
๐ธCreate the digital tokens: The first and most important step is to create the tokens that represent shares in the real world asset/property. In order to do this, one could create a legal entity that would exist solely to own the actual real world asset being tokenized. Plume uses Plume Arc to simplify the asset tokenization process. Plume Arc is a modular asset tokenization engine which connects services and KYC/AML providers. Plume uses ERC-3643 RWA token standard to ensure tokenized assets are regulatory-compliant.
๐ธSmart contract implementation: The issuance, balance tracking, and payouts of benefits associated with the digital tokens representing a tokenized asset would all be governed by smart contracts. Smart contracts are decentralized programs built on blockchain that have a transparent auditable code. Plume uses smart wallet with native account abstraction for seamless asset management, gas transactions, and RWA staking.
๐ธReal world data feeds: Once the Real world asset being tokenized and it's data will be brought on-chain using oracles. Plume uses data highways for real-time data updates of tokenized asset. Plume utilizes TLSNotary technology and custom Oracle contracts to verify and upload data, ensuring authenticity and reliability.