In the past decade, investors in the traditional financial market have struggled when it comes to big value investments like real estate property, gold and famous paintings as it is reserved for the few.

Similarly, trading such physical or tangible assets is a difficult task due to multiple issues, e.g. poor liquidity, high operating cost, and lengthy transaction periods.

Similarly, if we talk about private company securities, which is a physical asset, it is also illiquid in the market currently.

For selling company securities the buyers and sellers have first to find each other, once they do it, they have to vet each other and the assets which they are exchanging.

Adding to this, they have to conduct due diligence and involve the third-party intermediaries like the lawyer for preparing contracts to execute their transaction, which makes the entire process lengthier and costlier.

Related: How DCI’s Custodian Framework Will Help Institutional Investors?

How to Overcome Above Issues? Yes, There is an solution, Read Below

To overcome such issues, the tokenization feature of blockchain technology has emerged as the most revolutionary idea that could transform the entire investment sector.



The Tokenization feature of blockchain technology has emerged as the most revolutionary idea that could transform the entire investment sector.

You would now be wondering why is it still necessary for investors to transform their real-world asset/stock into digital asset tokens?

Here is the answer.

Tokenization allows the investors to represent money, shares in a company or real estate property in the form of digital tokens recorded on the blockchain.

Some Useful Benefits and Features Of Tokenization

The investors can trade these digital tokens instantly without worrying about liquidity and cost issues.

Tokenization feature of the blockchain also has much broader applications. Investors have three different token options on the blockchain platform, which they can utilize for peer-to-peer transactions.

Related: What does it mean Tokenization? Why is Such a Revolutionary Idea? How the Market is Responding?

These three tokens include payment token, utility token, and asset-backed token.

Among these, the asset-backed tokens are the ones, which can be used by the investors to represent their real-world assets/stocks.

Asset-backed tokens also have a subcategory-security token, which is very important when it comes to converting real-world assets into digital ones.



Security tokens are the digital representation of a tradable, valuable asset and hold real value, similar to traditional securities.

Security tokens are the digital representation of a tradable, valuable asset and hold real value, similar to traditional securities.

Still not satisfied? Wondering about the benefits you can avail by converting your real-world assets to digital ones.

Here is the answer.

Well, tokenization of real-world assets (e.g. stocks, bond, etc.) can bring more transparency and liquidity in the market. You must know that security tokens are regulated, have a real value and are also instantly tradable.

Investors by converting their real assets into digital ones have the opportunity to explore the free market, eliminate the need for intermediary services, and speed up their transaction speed.



Security tokens also bring credibility, minimizes institutional manipulation, and are also cost-effective when it comes to trading.

Security tokens also bring credibility, minimizes institutional manipulation, and are also cost-effective when it comes to trading.

To explore secondary market opportunities and transform their real assets into digital ones, the investors can take help of modern automated investment solutions like DCI ecosystem.

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DCI is the most innovative cross-asset investment ecosystem in the market that allows the investors to transform their real-world assets into digital ones through the tokenization facility.

The investors of the DCI Ecosystem can create a hybrid portfolio comprising of ‘’real and digital assets’’, which is further enhanced by advanced technologies like AI, Robo-advisory, machine learning, and risk rating.

Coming back to Tokenization

You must be thinking are there any issues that can hamper trading of asset-back tokens on the blockchain platform?

Yes!

Well, yes, there are technological and regulatory issues that will influence how quickly tokenization will be adopted in future.

Currently, the regulators and lawmakers around the world are trying to build a compliant regulatory infrastructure for tokenized investment on the blockchain platform and how to tackle the issues associated with it.

Still, converting real assets into digital ones can prove to be a game changer for investors in terms of having greater liquidity and secondary market opportunities when it comes to trading.

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