Tokenization of financial instruments such as stocks, bonds, units of investment funds, derivatives, etc., makes them more liquid and accessible online to investors all over the world. It also serves as a great alternative to traditional fundraising methods, helping businesses to avoid all the drawbacks of attracting venture capital or taking bank loans.Commodities.
These are basic goods with substantial fungibility, which in simple words means that they can be exchanged for other goods of the same type. The most common examples of commodities to be transferred to blockchain are materials, primary resources, agricultural or mining products. When tokenized, commodities such as gas, oil, or precious metals are digitized and given an amount of cryptocurrency that matches their real-world value.Real estate.
Despite the fast growth and high demand of the industry, it faces significant challenges such as illiquidity and high costs. By using tokenization, one piece of real estate can be split into multiple tokens and offered to lots of investors at a much lower price. Raw land, residential, commercial, industrial, and special-use real estate — all offer great opportunities for both business owners and investors.
Find out about a successful use case of $18M tokenized real estate of a luxury resort — Aspen Digital
The technology enables both traditional and digital artworks to be represented by a blockchain-based token. Now owners of valuable paintings and rare collectibles can benefit from enabling other people to invest in their piece of art without letting go of the actual item. Investors, in their turn, don’t need to spend money on storing the item.
Digital art seems to provide even more opportunities; the boom of NFTs and multiple platforms for their issuance give artists a longed-for possibility to monetize their work. Such platforms help to access potential buyers and facilitate a quick, direct transaction of the art piece.