Tokenization Concepts

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  • Concept of Tokenization: Tokenization involves converting assets like property, art, or cars into smaller parts, represented as tokens, allowing these assets to be bought and sold like shares in a company.
  • Accessibility to Investment: By splitting a high-value asset into smaller, affordable tokens, tokenization enables a broader range of investors to participate in markets previously accessible only to institutional investors.
  • Example of Implementation: A building worth 1 million euros can be divided into 10,000 tokens worth 100 euros each, making it possible for anyone with 100 euros to invest in the property.
  • Revenue Streams for Token Holders: Token holders can earn revenue from their investment when the tokenized asset, like a building, is sold, rented, or leased.
  • Democratization of Investment: Tokenization aims to democratize investing in illiquid markets, allowing people to invest in diverse assets with minimal capital, thereby broadening the range of investment opportunities available to the public.