The introduction of blockchain has changed how we invest in assets. Following the introduction of blockchain, the financial and technological landscape has undergone significant changes worldwide. Asset tokenization emerged as a cutting-edge strategy for utilizing blockchain technology to securitize assets. Asset Tokenization In its simplest form, asset tokenization is the process by which actual marketable assets are represented as tokens on a blockchain network. The benefits of asset tokenization include quicker settlement, more liquidity, improved risk management, and lower expenses. This is according to Rob Viglione, Co-founder and Team Lead at Horizen, a public blockchain project that offers one of the largest blockchain infrastructures. “Asset tokenization has made it possible to tokenize private securities or illiquid assets. Real-world asset representation as digital tokens on blockchain networks has gained popularity, which has resulted in an ever-growing number of asset tokenization platforms,” explained Viglione. “Businesses are attempting to break new ground in asset tokenization innovations, particularly for unique advantages. As a result, many asset tokenization systems are leveraging the most recent development in the blockchain industry,” he added. Benefits of Considering Tokenization More Liquidity Liquidity improvement is one of the main advantages of asset tokenization. The market for privately held companie...
