Basically, tokenization transforms traditional active ingredients into digital tokens that can be exchanged on a blockchain. Whether it is real estate, debts, bonds or actions of a company, tokenization provides efficiency and transparency to these processes. It also widens access to retail investors to these asset classes. A new research report by Brickken and Cointelegraph Research investigation on underlying trade models and provides an in-depth analysis of the reason why many Tradfi companies jump on the tendency to tokenization.
The anatomy of tokenized assets issuance
The journey begins with the structuring of the agreement, where the assets, whether ownership, an obligation or a investment capital, is legally identified and organized. Often, the asset is owned by a so-called special vehicle (SPV), a dedicated legal entity designed to protect the rights of investors.
Once the bases are placed, the active penetrates the scan phase and is recorded in the waves. After being struck, intelligent contracts can automate processes such as compliance checks, dividend payments and shareholders’ vote. This automation reduces administrative costs and eliminates ineffectiveness, which makes the system faster and more reliable.
During primary distribution, tokens are issued to investors in exchange for capital. This is similar to the digital version of a first public offer (IPO). Investors complete your customer checks, receive tokens representing a fractional property and access to instant access to a secure, transparent and based on the blockchain of their investment.
After the initial program, the tokens are managed through post-tokenization activities. The distribution of dividends, shareholders’ votes and property changes are all automated via smart contracts. Secondary trading platforms can provide additional unfair and liquid ramps for investors looking to withdraw money. Instead of waiting for months, even years, to sell traditional assets, tokenized assets can be exchanged by clicking on a button.
Revolutionize asset classes by tokenization
Tokenization is not limited to a single type of asset. From real estate to debt instruments and even carbon credits, its potential requests are almost endless.
The tokenization of the debt changes the game on the traditional capital markets. By representing obligations or loans as digital tokens, transmitters simplify trading and provide liquidity essential to these traditionally static assets. A notable example is the European Investment Bank, which has issued a digital obligation of 100 million euros on Ethereum blockchain, a clear sign of the way the tokenization is to modernize the financial instruments.
The world of fund management also begins to see a seismic change. Tokenized funds such as Franklin Templeton’s Onchain Us Government Money Fund use blockchain technology to treat transactions and manage the ownership of actions. According to the security tokens market, more than $ 50 billion in assets in all asset classes have been tokenized by the end of 2024, with $ 30 billion from real estate. While more and more institutions are adopting blockchain technology, these figures should skyrocket in 2025.
Tokenization is no longer a theoretical concept, an unprofitable sector or a niche market. It has been tested, refined and is ready to reshape the financial landscape. With rationalized processes, improved liquidity and wider access, this technology unlocks opportunities that were once out of reach.
While 2025 continues, we can expect an even greater adoption between asset classes, more in -depth integration with DEFI platforms and more innovation in token markets. For traditional and institutional investors, the future of token is promising.
This article does not contain investment advice or recommendations. Each investment and negotiation movement involves risks and readers should conduct their own research when they make a decision.
This article is for general information purposes and is not intended to be and must not be considered as legal or investment advice. The points of view, the thoughts and opinions expressed here are the only of the author and do not reflect or do not necessarily represent the opinions and opinions of Cointellegraph.
Cointtelegraph does not approve of the content of this article or any product mentioned here. Readers must do their own research before taking measures related to any product or company mentioned and assume full responsibility for their decisions.
