“Tokenization” is a mechanism that allows an asset to be represented by a digital entity - a token. Why tokenize assets?
- The rights to an asset are digitized and easily transferable through sending tokens or a trading process
- Simple for plain vanilla assets, highly complex for compounded and multifaceted assets
- All permits for digital processing are rolled into the token’s code for ease and speed of operation
- A Security Token (representing an asset) is a completely new instrument for a novel asset management infrastructure
- An asset along with all of its transactions represented by a Security Token on the blockchain can be viewed by all members of an ecosystem
- Tokenized assets (security tokens) are of much higher liquidity