What if any investor could invest small amounts directly into any number
and any combination of high-value properties and assets?
What if anyone with surplus income, young and old, whether from a
developing nation or an advanced economy, could participate
directly in the income streams and appreciation of real estate,
the world’s most popular asset class?
What if direct participation was available for other kinds of valuable
assets previously available only to high-net-worth investors?
That’s the promise of tokenization.
Tokenization is a streamlined, blockchain-based approach to asset
securitization. By making it possible for individuals to participate
directly in asset classes otherwise beyond their reach, tokenization will
democratize access to investments, unlock the value of sizeable asset
classes, and deliver widespread economic and social benefits.
In the current investment environment, you’re obliged to involve a whole
set of intermediaries for every single trade: an investment bank to assemble
and price an offering; a brokerage firm to buy and sell listed assets; and
custodians and depositories to keep track of the electronic records.
Tokenization would enable people to invest directly into high-value assets
without being obliged to go through the entire chain of intermediaries.
Only minimal infrastructure would be required to create and run a distributed
ledger for tokenization, which would be optimally run by a consortium of