How tokens benefit assets: The power of tokenization!

in #blockchain5 years ago

The financial world is witnessing a seismic reshaping of grand proportions. The tokenizations of real-world assets are disrupting the status quo. The way ownership is dealt with is about to shift for the better.


Beyond holding and trading, checking market volatility, and debating the path ahead for crypto compared to fiat, something a lot more significant is taking place; tokenization. It is the representation of real-world assets reflected on the blockchain through security tokens. These tokens hold several benefits when compared with standard assets & securities, and they are set to revolutionize the capital markets as we know it.
The mains benefits are:
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Frictionless Transfer of Ownership — Tokenization of real-world assets makes for quick transfer of ownership. Instead of lasting days to go through banks or establishments, it is a straightforward peer-to-peer technological innovation that facilitates instant transfers.

Access Around the Clock — Just as cryptocurrencies, assets might be purchased and sold at any time of the day through the blockchain and via smart contract technologies, from anywhere in the world with an internet connection.

Fractional Ownership — Each token can easily stand for a fraction portion of an asset’s whole value. This reduces barriers to purchase and also enables anyone to have a fraction of an asset like a property or a painting, opening up the industry for investors. Additionally, they could stand for the rights to a portion of earnings on an asset‘s worth, or even voting rights within the circumstances of equity in a business.
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Greater Liquidity — Tokenization will allow us to unlock the liquidity from illiquid property which is difficult to divide physically. Their high price (think real estate or perhaps venture capital funds) tends to make them inaccessible to everyday folks, as lockup periods are extended as well as the down payments. Tokenization will bring liquidity and permit us to buy or sell a fraction of an asset, locking up the capital rather than the investor.
The digital asset markets will disrupt and completely change the traditional stock exchanges

Emerging businesses use Security Token Offerings (STO) to raise money backed by tangible real-world assets. They are ideal as an entry point and ownership structure. The simplicity of transferring tokens via the blockchain, internationally, instantly, and with a reduced transaction cost, could completely disrupt traditional stock ownership structures and markets.
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The concept of owning an asset is turning into a subsector of the cryptocurrency industry via security tokens or tokenized securities, as they represent stocks, property, along with additional securities with tokens reflecting their value on the blockchain; therefore improving transparency, liquidity, and efficiency. These asset-backed tokens are by no means restricted to blockchain related tasks which often resorted to ICOs for fundraising. They may even prove to be a much better way of conducting business on stock exchanges than by the means we have today.
Security token offerings (STO) will be the gateway to the digital asset economy

Although with specific regulations that keep the token issuers accountable, an STO is really a fundraising tool much like an ICO.

The reasonably fast results of ICOs has turned them as a viable strategy of crowdfunding. While ICOs have helped plenty of startups raise a good deal of cash, the fundraising strategy paved the way for a range of scams as there have been minimum regulations involved. Regulation is key for crowdfunding via the blockchain since it protects all parties involved, especially the investor.
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Blockchain engineering is growing at breakneck speed in many industries and not only in finance, it provides incredible applications that could benefit all walks of life. When it comes to ownership, with the advancements in smart contracts, security tokens came into existence with the single goal of establishing themselves as the solution for real-time digital assets transfers within legal boundaries.
Predya’s STO

Predya is a groundbreaking AI based cryptocurrency trading asset management solution. Shortly Predya will publish all the details and instructions for its STO participation. For the time being, the following are the primary characteristics of the offering.

Profit Units of a Luxembourg Limited Company — Predya’s token (PYA) is a Security Token Offering supported by Profit Units of a Luxembourg Limited Company.

KYC/AML Checks — For smooth onboarding, KYC/AML checks will be ensured by Predya.
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Predya’s Dividend — PYA offers financial rights on Predya’s dividend. Tokens won’t just have intrinsic value but will represent a monetary claim on the organization fixed income.

Not surprisingly, securitization of non-liquid assets, venture capital, art, currency, precious metals, real estate, sports teams, etc., is set to be one of the greatest stories of 2019 and beyond.

In fact, it is more likely to reshape how investors value their assets and their considerations moving forward. The driving force behind this particular market upheaval will be the rise of blockchain and cryptocurrency. Until recently the crypto industry was considered to be restricted to early adopter & speculators. However, they are on track to go from the perimeters of finance to everlasting fixtures in everyday life.
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Note: This document with all the information in it is shared here to boost our knowledge of blockchain and crypto ecosystem, the original document can be found in document source, I have no ownership right over the document.



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