Tokenization is one of the biggest trends in blockchain, following decentralized finance (DeFi) or nonfungible tokens (NFTs). The transition of real-world assets to the blockchain, including equity and debt, can change financial markets by bringing more liquidity and making the trading process cheaper and more automated.
A recent report released by the Global Financial Markets Association (GFMA) and Boston Consulting Group estimates that the global value of tokenized illiquid assets will grow from about $0.3 trillion today to about $16 trillion by 2030.
Tokenization is not just a fad for crypto enthusiasts. It’s attracting major players in traditional finance. In May 2023, BlackRock chairman Larry Fink said that tokenization could make capital markets more efficient. The head of the world’s largest asset manager, with about $10 trillion under management, stated in his annual letter: “Tokenization of asset classes offers the prospect of driving efficiencies in capital markets, shortening value chains and improving cost and access for investors.”
Nevertheless, tokenization is still in its infancy and must overcome several challenges before reaching mass adoption, including regulatory clarity, fragmentation, slow onboarding and lack of infrastructure.
In the GFMA report, interviewed token issuers expressed concern about the confusion around the various platforms and exchanges available, emphasizing that they are unclear on how to reach their target investor base.
How user-friendly tokenization platforms can drive adoption
To address the fragmentation and slow adoption of tokenization ecosystems, the market needs one-stop platforms that foster interoperability and support issuers throughout the tokenization cycle.
One such example is Brickken, whose recently launched Token Suite product helps companies and entrepreneurs tokenize real-world assets while giving investors access to alternative investments. The all-in-one package helps issuers to create, manage and sell security tokens and other types of tokenized assets.
With Token Suite, companies can leverage Brickken’s intuitive interface to create the token’s identity, customize its management and comply with regulatory requirements thanks to the built-in KYC and AML tools. In addition, Brickken helps clients sell their tokens by connecting them with vetted experts and investors.
Once created, companies can embed voting rights and automate dividend payouts, minimizing the costs associated with investor-related activities. Companies can maintain a full overview of their investors while supporting their value proposition by offering benefits like discounts and access rights.
Brickken offers a dedicated portal for investors seeking to get exposure to alternative assets, where all projects are thoroughly checked by the team. Investors can update their portfolios by allocating them to tokenized private equity and debt instruments. This makes tokenized bonds more accessible to retail investors.
With Brickken, companies can leverage a more dynamic and efficient way to raise funds by accessing a global pool of investors directly, bypassing intermediaries and custodians. The customizable, Shopify-like, white-label solution is designed to meet regulatory compliance in various jurisdictions, bringing more liquidity driven by its global reach. More importantly, Brickken’s Token Suite covers the entire token creation process, providing an all-in-one solution that helps companies forget about multiple steps and tools from different providers.
Brickken has grown rapidly thanks to a working business model that has attracted interest from top-tier venture capital firms. For instance, the company received a $350,000 grant from Neotec, a Spanish-based fund backed by the European Investment Fund (EIF). It also secured exclusive admission to Spain’s financial regulatory sandbox and has raised a total of $3 million.
Tokenization platforms like Brickken accelerate the transition to blockchain-based security tokens, creating the infrastructure for Web3 finance. Thanks to these all-in-one solutions, companies and investors can explore a comprehensive resource for creating, selling and managing digital assets.
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