Tune in to learn what changes @carlosdomingo would make to our high-level 'Asset Tokenization' framework.

v2 of it coming soon... ✍️🧮

What Is Asset Tokenization?

Asset tokenization refers to the representation of an asset outside of its ledger of origin (and authority).

For simplicity, let’s divide process of asset tokenization into five steps:

1⃣ Original asset: Stock, bond, real estate, cryptocurrency, NFT, token, etc.

2⃣ Ledger of origin: State-governed registries, corporate databases, blockchains, etc.

3⃣ Token issuer: Regulated entity, DAO, or immutable smart contract.

4⃣ Destination ledger: A ledger with improved and/or complementary functionality vs. the ledger of origin.

5⃣ Tokenized asset: A more performant (and risky) representation of the original asset.

Why Is Asset Tokenization Needed?

1⃣ The original assets tend to have limited use cases and distribution, and therefore also limited value creation opportunities.

2⃣ The ledgers of origin for these assets tend to run on legacy tech and/or in isolated environments.

3⃣ The token issuers capitalize on the opportunity to expand the reach of the original assets from their ledgers of origin to new destination ledgers. The token issuer introduces a new layer of intermediary risk (custody, reserve management, etc.) for the end users of the tokenized assets.

4⃣ The destination ledgers tend to offer more digitized, performant, interoperable, and auditable environments for the original assets.

5⃣ The tokenized assets unlock new use cases, distribution channels, and scaling & value creation opportunities for the original assets (and for the token issuers & the end users).