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trusted and responsible entities as a managed utility-style service, with
a high security and provenance guaranty. With a tokenization utility
in place, virtually any asset could be securitized. Tamperproof,
blockchain-based distributed ledger technology (DLT) makes
tokenization quick, easy to manage, and highly secure. Those
tokens could be bought and sold in any fractional quantity, enabling
frictionless participation in high-value asset classes.
A tokenization utility would allow any type of institution, whether
real estate companies, museums, or municipalities, to issue tokens
representing ownership stakes in their underlying assets. Moreover, an
institution could make its own decisions as to subscription and pricing
mechanisms, without needing to compensate investment bankers for
privileged access to a small, concentrated group of buy-side investors.
Typically, high-value assets are exchanged solely between a limited
pool of high-net-worth investors. With tokenization, the pool of buyers
and sellers would expand to include the entire world of retail investors.
Investors would participate in a low-friction, high-liquidity marketplace for
trading tokens in any national currency and at every conceivable order size.
For the first time, retail investors would be able to purchase shares in
high-value assets, in any denomination, with the ability to trade those
tokens within a highly liquid, global marketplace. This would rewrite the
rules for asset allocation, making it possible to create broadly diversified
portfolios with higher levels of safety, appreciation, income, and liquidity
than can be achieved through traditional methods.
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