Tokenizing assets involves the creation of a distributed ledger, such as a blockchain token, that is specifically suited to the role of acting as a digital representation of a real asset. This type of coin offering is referred to as a security token offering
, or STO. A security token is created within a distributed ledger by a security token offering, which is itself a subset of the "initial coin offering". This is then coded to represent some tradable asset, such as a piece of stock in a company or a share of ownership in a tract of real estate.
Tokenizing assets and the distributed ledger technology at large has the capacity to upend many existing paradigms, particularly those in the financial sector. It does this through a number of means, not the least of which is its automating of some functions of the exchange process with algorithms designed into the data chain itself. This cuts down on transaction times by weeding out middle men and consequently, in many cases, lowers the fees to execute the exchange.
This technology is set to grant access to new sources of capital for previously illiquid assets, such as commodities, real estate, luxury goods, and private company shares.
Let Polytree design a solution that allows your company to participate in this technological asset management method with enabled smart contracts to help secure, manage, and transfer your assets.