The decentralized advantages of the blockchain have convinced a lot of individuals and groups to embrace the technology for productivity and financial benefits.
The asset tokenization services have become an essential part of solving the fundamental problems in numerous niches such as health, finance, education, and more. Tokenization has been rising in popularity because of its great capability to transfer tangible assets to intangible ones. The technology has solved the problems people have with non-liquid assets, transforming them into tradable assets.
Some physical assets are not just fit for some smaller investors. For instance, an artwork is valued at one million dollars. But the artist hasn’t found any buyer unless some buyers only want to purchase the fractions of the assets. By using the asset tokenization platform, the artist can convert the rights of their art into tokens. It becomes possible to sell the artwork to multiple buyers where the ownership is represented by the number of tokens the buyers have.
These tokens are bound to the assets. It is also possible to purchase the ownership from the investors as well. This idea has long been there for decades. But only recently, the adoption of tokenization services has become relevant to various industries.
Tokenization services for art
The tokenization services for art are simple and straightforward. One can use blockchain technology to sell their artwork through the NFT market. NTF stands for non-fungible token. It is the digital tokenized version of the digital artwork.
By using this, the individuals or groups can grant the fragment of the ownership of the artwork.
For those familiar with equity, that’s how the same thing works in the tokenization services for art.
Let’s take a look at an example of painting art. When a painting art is decided to get tokenized, the professional curator will check the art. They will then appraise the work and determine the values.
The accredited curator will then inform the values to the owner of the artwork. If the owner is not satisfied with the appraised value, they could hire another curator for comparison.
And then, the asset tokenization companies will help the artist to convert the artwork into digital tokens and offer them to potential buyers.
Tokenization services for Real Estate
Real estate tokenization has also become more popular lately because it offers much accessibility and flexibility to all real estate market participants.
The process of digitizing property assets has also been viable through the common real estate tokenization platform. The method to do this revolves around cryptocurrency fundraising. In this sequence, the investors can be individuals or groups, or even companies. They will use the tokenization real estate services to exchange their fiat currencies or cryptocurrencies for the assets tokens.
The property value will then be converted into digital tokens through the particular asset tokenization platform. These tokens will later represent the shares of the property.
The owner will then promote the tokens at the market, allowing the investors to attain fractional ownership of the property. Nowadays, each investor has the same opportunity to use this tokenization of real estate because they no longer need to prepare massive capital for their investment.
Tokenization services for Collectibles
The tokenization services can help the collectors, curators, gallery owners, as well as artists to take advantage of the art as liquid investments.
The dealers and gallery owners will have a much better option for flexible liquidity, which comes with friendly interest rates for the loans. The on-chain storage of the data will ensure that the artwork is authentic.
The collectors can purchase the paintings in the form of tokens as the fractions of the investments. The same thing goes with the investors too. Opening the market to the new investors won’t need to draw more capital. With the asset tokenization services, the art investors can now invest without paying fully for the owner since they can share the ownership with the other investors.
Through this technology, the artists will be able to broadcast their artwork across the globe without the intervention of a third party. They can also retain the percentage of tokens at the first sales and have more ownership rates. They can also control the revenue of their artwork.
Tokenization services for Intellectual Property
The asset tokenization platform can also help the owners of Intellectual Property. There are many companies like INC4 which are striving for solutions to tokenize Intellectual Property rights for good reasons.
As we know, IP rights have been challenged by the legal barriers in one country from another. Even before the IP owner can launch their project to the market, they need to wait for a long time until their IP is protected. Here is where the decentralized and flexible solutions from blockchain technology can help.
In conventional methods, IP protection is probably limited within the country where the right is granted. When there is no global patent, the excruciating procedures in each country can make it harder for the creators.
The existence of asset tokenization companies is focusing on the power of the creators. Using the smart contracts, the licenses will be represented in the tokens. There are international conventions that have made the application much easier. The applicant will only need to fill one application, and they can reserve their IP rights at the international level. It will surely come soon for all creators.
Tokenization services for Investment Funds
There have been many venture funds that are involved with asset tokenization. In the investment funds category, tokenization can eliminate unnecessary administrative costs and other expenses. Not to mention that it is all open to all individual investors. Ones won’t need to be “crazy rich” to start diversifying their investment portfolio since the tokens can be bought in smaller batches.
The tokenized investment funds can also attract a group of people who share the same interests. An unlimited number of investors will then participate in the funding of the particular project. In some cases, the investors can also open secondary markets. It is definitely a win-win for all of them.