Bitcoin, which was invented over a decade ago, was the first use case of blockchain technology. But currently, blockchain’s list of applications is not capped at cryptocurrencies, since several features have been discovered to solve the various needs across different sectors. As of today, the number of utility tokens prevails, although the most significant portion of market capitalization still lies in crypto.
Most institutional investors consider cryptocurrencies as “high-risk” ventures. They prefer to put their money in traditional assets, such as the highest volume stocks in the market, Tesla Inc., Apple Inc., Microsoft, and Amazon, or commodities like Gold, Oil, Diamonds, and other precious metals that are considered as safer investments.
Stablecoins, such as Ether, JPM Coin, and TrueUSD, which are pegged to the price of fiat currencies, has gained a lot of attention in the blockchain space. Nevertheless, one of the major categories of digital assets is represented by asset-backed tokens, often referred to as security tokens.
What are Asset-Backed Tokens?
Asset-Backed Tokens are blockchain-based units of value that are pegged to real-world assets, like a piece of art, bonds, real estate, commodities, luxury products, or stocks. They represent a big sub-category of security tokens and enable holders to enjoy ownership rights over a physical and tangible asset in a digital form.
Therefore, Asset-Backed Tokens are an essential class of security tokens because they represent real-world assets. But why should investors consider security tokens anyway? Automation, security, transparency, and liquidity are some of the aspects that make Asset-backed Tokens attractive. Many financial experts project that the traditional markets will embrace tokenization on a global scale, which will form blockchain-oriented ecosystems powered by security tokens.
“Asset-backed tokens, at least when they’re done right, offer back-and-forth convertibility, a handy financial tool.” Said Jeremy Dahan, CEO of diamDEXX. “They enable people to own assets in a liquid form, and when redeemed, function as a tool to acquire valuable goods”.
Invest in digitized assets
The Tokenizer Platform offers an opportunity for investors to invest in Asset-Backed Tokens and get easy trackable profits. Besides, we help businesses tokenize their assets and gain funds for the development of their projects by connecting them with a larger pool of investors from all parts of the world.
The concept behind Asset-Backed Tokens on the Tokenizer Platform is based on the creation of a new class of low-risk tokens based on real-world assets. It will transform the entire frontier of the cryptocurrency investment portfolios, and increase the expected profits for each level of risk.
Tokenization as the future of investment banking
Tokenizer Platform considers an opportunity to make Asset-Backed Tokens a new financial tool capable of disrupting financial markets and enhancing the efficiency of raising capital for businesses. Asset-Backed Tokens created by the Tokenizer Platform are regarded as significantly revised and upgraded securities that neatly fit-in with all real economy assets.
How to tokenize assets on the Tokenizer Platform
To tokenize your assets, you must go through the registration process at our company. After filling and submitting your details, we will carry out an audit and collateralization, after which you will be eligible to issue your own Asset-Backed Tokens and gain access to a large pool of investors. We will offer you with 24/7 support to manage all the procedures and achieve your goals. If you want to invest in Asset-Backed Tokens issued in the Tokenizer Platform, you should register in our investment platform, pass the KYC procedures, and get your own blockchain wallet.
Institutional investors like Warren Buffet already labelled cryptocurrencies as a “bubble” because of their high volatility. However, the introduction of Asset-Backed Tokens will attract a new class of investors- individuals who were hesitant to invest their money in the purported murky waters of cryptocurrency volatility.
Asset-Backed Tokens will also gradually replace traditional fiat currency as a medium of exchange because of their dependence on the immutable blockchain technology, which makes transactions faster, secure, and transparent. With the advancement of technology and the introduction of clear security regulations, Asset-Backed Tokens will undeniably become the preferred medium of exchange and the future of investment banking.