While some remain skeptical, many experts believe the tokenization transformation of asset-backed securities will be one of the biggest financial stories of 2019 and the years beyond. The blockchain-based model potentially can fundamentally change how these securities digitally represent, distribute, and manage going forward.
In reality, this process is likely to remodel how investors value their assets and how they think about them going forward.
The driving force behind the outbreak of the archaic, “Wall Street” market is the growth of cryptocurrencies and the innovative Blockchain technology. Until now, both technologies have been an area of early adopters and entrepreneurs, however, they are about to move from the edge of our financial life to permanent components in our existence.
Gladly, there are several nations that already have developed legal frameworks adapted into the new blockchain market standards.
Switzerland and Malta are a great example of a successful blockchain adoption, including solid tokenization applications.
Let me share 3 features of the traditional investment that would be changed for good thanks to the all-encompassing tokenization.
1.THERE WILL BE NO MORE SUCH THING AS TERRITORIAL LIMITS
Widespread adoption of tokenization for raising capital uses innovative blockchain tech. This would remove territorial limits for investing.
For example, an investor from Geneva could invest in a project in Singapore. They would not need to leave home. The blockchain provides high speed, liquidity, security and efficient transfers.
2.MORE AND MORE PEOPLE WILL BE ABLE TO AFFORD HIGHLY-VALUABLE ASSETS
Mass tokenization could forever change traditional investments. It creates a new category of crypto-financial assets and updates the common concept of ownership.
Many different things potentially can put on the blockchain, such as real estate, company stock, precious metals, as well as artwork. Real estate properties, company X stocks, precious metals, and fine art paintings are some examples.
The main idea is that tokenization may allow more people to purchase costly assets. Currently only a few individuals can afford certain things. For instance, a trader could diversify their portfolio and face lower risk.
3.SAY “BYE” TO THE MINIMAL INVESTMENT
The third essential feature I would like to outline is the fact that, thanks to the tokens’ dividable nature, they promise much better liquidity which would double the expected value from trade as well as would overcome the need for minimum investments.
So why don’t we all forget about the “cookie jar approach” of earning money and play boldly?
Warren Buffett, a world-known business magnate, investor, speaker, and philanthropist as well as a CEO of Berkshire Hathaway, once said: “Beware the investment activity that produces applause; the great moves are usually greeted by yawns.”
So, would you like to be a pioneer or one of those who are left behind the tokenization crusade? It’s your choice.
Based in Zug, the platform is fully compliant with all Swiss laws related to financial intermediaries, banking, anti-money laundering, and organized trading facilities. Among its core values, there are innovative solutions through blockchain technology, which ensures security and liquidity.
EDSX is the first platform in Europe with primary and secondary markets for both institutional and retails. EDSX is a pioneering platform that employs the world’s leading technology to globally list security tokens in both primary and secondary markets, listing digital securities of real financial instruments to the public with a decentralized peer-to-peer exchange. Our goal is to fully engage every aspect of the financial revolution.
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