What is Tokenization in Crypto?

Tokenization is potentially the largest use case of the blockchain and distributed ledger technology.

Tokenization is the process of transforming ownership rights of an asset into a digital token on the blockchain. For example, theoretically you could tokenize your house worth R500,000 into a total of 500,000 tokens, with each token representing 0.000002% of your house's value.

What's great is it works with digitizing tangible and intangible assets.

Why Tokenize Assets?

Once an asset has been tokenized they are able to enter the digital world. They become able to be stored and traded, fractionally or completely, as well as transferred to other owners. As tokens run on the blockchain, it allows you to unlock blockchains' wide range of benefits.

The Future of Tokenization

Blockchain technology provides a decentralized system and allows anyone, anywhere in the world to tokenize their assets and sell them at any time. Moreover, the list of assets can be extremely broad, we see many assets like stocks, bonds, property and commodities being increasingly tokenized all the way to illiquid assets such as, antiques, artworks, private company shares, rare watches and jewellery etc. As we speak the NFT boom has been just that, it has helped digital artists in transforming their works into tokens. See what we wrote on NFTs here.

The blockchain removes numerous barriers to investment and provides greater liquidity. It brings new investors to opaque and illiquid markets. Investors will need to do their research and fully understand what they are buying when they invest in specific tokens. The EasyCrypto10 is an index that invests in the top 10 crypto assets by market capitalization that enable tokenization.

#EasyCrypto10 gives exposure to the blockchains tokenization will run on.