The creation of digital evidence of ownership for real-world assets, such as property or artwork, is made possible via asset tokenization systems. With their real-world capital and liquid value, these asset-backed tokens vary from security tokens in many ways. There is a wide range of digital assets that may be managed and traded using digital assets. Tokenized assets can be utilized to conduct global transactions without the involvement of middlemen, such as bankers, brokers or lawyers.

Due to the public, immutable nature of blockchains and distributed ledger technology, ownership information and transaction record of an asset cannot be altered after being registered. Faster transfers and completely borderless international trading are also some advantages of asset tokenization.

Although asset tokenization is relatively new to many investors, there are already multiple asset tokenization platforms in the market which are ready to serve the needs of both issuers and investors.

What is Asset Tokenization Platform

To put it simply, the asset tokenization platform provides a gateway for the digitalization of physical assets. In particular, they enable issuers to tokenize their existing assets, listing their tokenized assets on the platform and subsequently facilitating the transactions of tokenized assets on the platform between investors.

The systems are referred to as Tokenization as a Service (TaaS) platforms in technical terms. Tokenization of nearly any real-world asset can be done with the greatest tokenization platform out there. Asset tokenization systems are used by issuers and investors to monitor and manage their investments without the need for middlemen. 

Choosing the best asset tokenization platform requires a thorough understanding of what they do. Here are some of the top asset tokenization platforms in their respective region and sector:

i)               Securitize

As an end-to-end platform for fundraising, Securitize covers the entire process from initial issue to secondary trading. They offer a "Mini-IPO," "Reg. D," and "Reg. D + Reg. S" to firms in order to raise funds.

Businesses can publish their securities on Securitize Markets after they've been issued, giving them access to the main market and secondary trading. The newly formed digital securities can be bought and sold here by investors.

SEC and FINRA certified broker-dealer Securitize Markets is an alternative trading system (ATS).

ii)              Polymath

Blockchain-based token creation and management is Polymath's sole focus.

The ERC-1400 token standard, which they refer to as the "security token standard," was pioneered by these individuals. It was designed to standardize the creation, trading, and administration of security tokens. Their solution generates over 200 tokens.

Token-specific blockchain, Polymesh, is currently being developed by Polymath. Regulations are now part of the blockchain's base layer, as opposed to being an add-on to it like they were in their previous approach. Participant compliance with local regulatory agencies will be significantly easier as a result.

iii)             ADDX

ADDX is the latest addition to the list of the finest asset tokenization platforms. ADDX, which is based in Singapore, helps companies raise funds by enabling the creation of digital securities. To take advantage of the platform's asset tokenization features, companies must first pass ADDX's due diligence process. In the ADDX marketplace, digital securities can be made available to a wide range of investors.

When it comes to asset tokenization, ADDX stands out for its emphasis on thorough due research. It ensures that only accredited investors are allowed to participate on the website. Hedge funds and private equities can be traded on ADDX because of their flexibility.

iv)             Bitbond

Bitbond has a solid reputation as one of the most reliable systems for asset tokenization. Since 2013, it has established itself as a leading asset tokenization platform, racking up an impressive list of accomplishments. A major objective of the platform is to provide technical assistance for the creation of tokenized bonds. One should also keep in mind that Bitbond's clients include banks, fund managers, and producers of digital currency.

Banks are said to be utilising Bitbond's white-labeled technology to streamline the process of issuing bonds. Customers benefit from lower total costs because of the Bitbond white-label solution's significant cost savings. Intriguingly, Bitbond was a driving force behind Germany's first STO, which was introduced in 2019. Using the platform, a bond might be tokenized, making it easier for investors to get a piece of the action.

Visuals courtesy of PIXABAY and UNSPLASH

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