Virtually all of the crypto debate centers on cryptocurrencies and #NFTs. But it’s at the confluence of Blockchain tech and physical assets where the important action is.
👉 It’s about the tokenization of assets for recording and management purposes, using Blockchain technology.
In general its quite innovative to tie a digital token to a physical asset. And because because almost anything can be tokenized, trillions of $ will be uploaded to the #blockchain.
✅ Dramatically increase the liquidity of many assets
✅ Reduce the bureaucracy and lead times of transactions
✅ Open access to investments now only available to the wealthy
✅ Make it easier for young people to co-own assets, etc.
What kind of assets:
✅ In the case of #PhysicalAssets, such as real estate, art, etc. the value of the token or NFT is tied to the value of the asset.
✅ In the case of virtual assets, such as metaverse real estate, generative art, etc. value might be difficult to determine.
⚠️ Tokenization can implicate several US and EU laws, including those related to licensing, securities, AML, sanctions, IP, gambling, and others.
But the #tokenization of increasingly bigger chunks of #wealth will become an exponential #trend very soon.