On tokenisation....
A primary function of tokenisation in the digital realm is to make assets immediately liquid and therefore instantly exchangeable, which in turn drives an increase in value.
Today, almost any asset can be tokenised, for example sports teams and associated elements (see DC United fan tokens @ https://www.dcunited.com/club/xdcnetwork), music, art pieces, real estate, precious metals and financial products etc etc etc....
Tokenisation offers numerous benefits, the most valuable of which include faster transactions, low cost, liquidity, security, transparency, flexibility and in my own opinion very importantly, low entry barriers and fractional ownership. Decentralisation is also a key benefit, but this is a topic all on its own.
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One might debate that regulating this tokenisation ecosystem is not happening fast enough, security of DApps and their connections to blockchains cannot yet be absolutely guaranteed in each instance and the gap to legacy technologies and systems especially in traditional banking has not yet been suitably bridged. However, fundamentally, most perceived weaknesses of securitisation are removed when tokenisation is blockchain based. Blockchain transactions are immutable and use smart contracts which collectively provide robust safety, significant transparency and can automate regulatory compliance.
Distinct from traditional securities trading, tokenisation enables one to trade in fractions which opens up opportunities in many areas for those with a minimum amount of capital. Additionally, tokens allow the holder a degree of control over decisions relative to their investments that is not possible with securitised assets. Tokens are usually retained by the investor which precludes third-party intermediaries, transparency enables accurate price discovery and they can be traded globally at any time with real time settlement.
Blockchain based asset tokenisation is fast breaking out of its infancy. As new opportunities and use cases are being unearthed every day, obstacles are being overcome and the gap between the old and the new is narrowing. What started as a “novelty” is already transforming how the world transacts.
