Are the questions like what is asset tokenization, what is the top asset tokenization platform, hovering in your mind? If yes, you’ve reached the right place where you’ll find answers to all the questions.
Many new trends have evolved from the innovative developments in the blockchain landscape over the recent years. The world has witnessed massive changes in the financial and technical landscape following the arrival of blockchain. One of the notable trends emerging from the world of blockchain in recent times is the tokenization of assets.
The tokenization of assets has evolved as an innovative approach for leveraging blockchain technology in securitization of assets. The continuously growing demand to find the top asset tokenization platform is clear proof of the popularity of asset tokenization. So, what are some of the renowned asset tokenization platforms you can find today? What is asset tokenization? Let us try to discover the answers to these questions in detail in the following discussion.
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What is Asset Tokenization?
One of the foremost doubts revolving around your mind right now must be the definition of asset tokenization. You cannot just look for the best asset tokenization platform without understanding what asset tokenization is. Asset tokenization is basically the process in which real tradable assets find representation on a blockchain network as tokens. Such types of tokens, also known as ‘security tokens,’ are generated through a security token offering or STO, a variant of an initial coin offering. The security tokens can represent financial instruments, tangible assets and intellectual property.
Tokenization of assets offers the benefits of faster settlement, improved liquidity, enhanced risk management and reduced costs. Interestingly, asset tokenization has opened up the possibilities for tokenization of illiquid assets or private securities. Representation of real-world assets on blockchain networks as digital tokens has become a popular trend, thereby leading to a continuously expanding asset tokenization platform list. Companies are trying to discover new grounds in the new developments with asset tokenization, especially for the exclusive benefits. Therefore, you can find many asset tokenization platforms capitalizing on the latest trend in blockchain space.
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What is an Asset Tokenization Platform?
The next important question for any individual seeking the most popular asset tokenization platform would be the definition of an asset tokenization platform. Well, there is nothing mysterious about an asset tokenization platform once you have understood the basics of asset tokenization. The asset tokenization platform is basically a portal for converting real-world assets into digital tokens.
In technical terms, the platforms are known as Tokenization as a Service or TaaS platforms. The best asset tokenization platform can help you tokenize almost any type of real-world asset. Institutional investors as well as financial institutions leverage asset tokenization platforms for monitoring and managing their investments without any intermediaries. So, how can the asset tokenization platforms offer these functionalities? The answer can be clearly evident in an understanding of how asset tokenization platforms work.
If you want to select the top asset tokenization platform, then you must have a clear impression of their work. Here are the important steps involved in the working of asset tokenization platforms.
- Investors have to choose the asset for tokenization.
- The second step in asset tokenization involves evaluation and pricing of the asset alongside identification of suitable regulations and jurisdictions.
- In the third step, the asset tokenization platform uses its technology for asset tokenization to create legally-compliant tokens.
- The asset tokenization platform offers an investor or issuer fund management dashboard. The dashboard includes features for investor verification, fundraising, KYC, investor voting rights and AML.
- Now, the asset tokenization platform issues a Tokenized Assets Offering or TAO for the investors to purchase the token offering. The integration of smart contracts in the asset tokenization process offers better value in automation of regulatory compliance. In addition, smart contracts also remove the need for intermediaries.
- Finally, the token would go on Security Token Exchanges, where investors could trade the tokens on the secondary market.
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List of Top Asset Tokenization Platforms
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With a clear impression of the basics of asset tokenization and the working of asset tokenization platforms, you might be eager to discover the best asset tokenization platform on the market right now. Here is an overview of some of the top names among asset tokenization platforms.
The foremost entry in an asset tokenization platform list would be tZERO, with impressive funding at $330 million. It offers the ideal asset tokenization platform with the advantages of a cryptocurrency wallet. Users can avail the benefits of a marketplace for trading private digital securities. Interestingly, tZERO was one of the first entries in the asset tokenization game. The platform has the backing of Overstock, a publicly-traded company, thereby elevating the credibility of tZERO for asset tokenization.
tZERO offers a customized solution for helping issuers in easier tokenization of their securities. In addition, issuers could also bring the tokens on the tZERO ATS or alternative trading system. Investors could purchase or sell the tokens on the tZERO ATS. The notable use case of tZERO, which made it the most popular asset tokenization platform, is for Aspen Digital. Aspen Digital securities started trading on tZERO ATS in 2020 with representation of share in equity of St. Regis Aspen Report.
The next addition as the best asset tokenization platform brings ADDX into the equation. Based out of Singapore, ADDX offers adequate support to companies in raising capital by enabling the generation of digital securities. Companies have to pass the due diligence process of ADDX for leveraging the benefits of asset tokenization on the platform. The ADDX marketplace offers a promising platform for exposing digital securities to a diverse pool of investors.
One of the most crucial highlights of ADDX as an asset tokenization platform is the focus on due diligence. It ensures the participation of accredited investors only on the platform. However, ADDX allows flexibility for trading digital securities from hedge funds and private equities.
The reputation of Bitbond as one of the trustworthy entries among asset tokenization platforms is unquestionable. It has been a top asset tokenization platform, with an impressive track record of activity in the asset tokenization space since 2013. The platform primarily focuses on offering technological support for tokenized bonds. One should also note that the client base of Bitbond includes banks, fund operators as well as issuers.
According to the claims of Bitbond, banks leverage their white-label solution for streamlining the process of issuing bonds. The white-label solution of Bitbond offers a considerable reduction in overall costs, thereby ensuring a better competitive advantage for their clients. Interestingly, Bitbond was one of the driving factors for introducing the first STO of Germany in 2019. The platform helped in tokenization of a bond which enabled investors to gain exposure through purchasing Bitbond Token.
Another notable name as the best asset tokenization platform would refer to Tokensoft. It provides the technology required for issuing digital assets on the blockchain network of your choice. Tokensoft boasts of a clientele that includes investment banks, startups, enterprises and funds. In addition, it also offers a tokenization platform that helps users in configuration of compliance requirements. Users can get the advantage of configuring compliance requirements for digital assets as well as digital securities.
Recently, Tokensoft has successfully introduced the first-of-its-kind SEC-registered security on blockchain in partnership with Anchorage and Arca Labs. The fund includes US Treasuries and trades in the form of ArCoin tokens found on the Ethereum blockchain.
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The entry of Securrency as the most popular asset tokenization platform might be an overstatement until you understand its capabilities. It offers blockchain-based tools tailored for broker-dealers, issuers as well as ATS or alternative trading system operators. The tools on Securrency help users in issuing, maintaining and trading tokenized securities with considerable flexibility. The asset tokenization platform has developed two distinct token standards such as CAT-20 and CAT-721.
With the help of unique token standards, the asset tokenization platform offers the advantage of compatibility with different blockchain platforms. As a result, Securrency is easily the best asset tokenization platform for enhanced levels of liquidity. You don’t have to worry about restrictions to one specific ledger, as you can trade in digitized securities through Securrency on different compatible blockchain networks.
You cannot miss out on ConsenSys Codefi in your search for the top asset tokenization platform, especially considering its functionality. It basically offers a comprehensive suite of blockchain applications tailored for enterprise clients. You can find an application known as Codefi Assets on the platform for asset tokenization. Dedicated only to asset tokenization alongside management of digital assets, Codefi Assets redefines the standards of flexibility in asset tokenization.
By leveraging Ethereum, ConsenSys has apparently accumulated over $1 billion in tokenization projects, digital assets, launches and digital assets. Another interesting highlight of ConsenSys Codefi is the involvement of a massive community of developers. At the same time, the platform also serves the asset tokenization requirements of many global enterprises. With the backing of ConsenSys, the ConsenSys Codefi can easily become the best asset tokenization platform as the market gains mainstream recognition.
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People searching for the most popular asset tokenization platform might also come across Tokeny Solutions. The T-REX platform of Tokeny Solutions delivers profound value for asset tokenization. It offers exclusive functionalities for issuing, managing and transferring security tokens. Interestingly, the platform is suitable for investors as well as issuers, alongside offering favorable grounds for communication among them.
The other striking functionalities included in T-REX platforms, such as investor onboarding, reporting and token recovery process, make it interesting. On top of it, you can also find functionalities for compliance enforcement with the T-REX platform. Tokeny Solutions also deserves a special mention in an asset tokenization platform list for its blockchain-based identity system, known as ONCHAINID. The identity system facilitates easier identification of investors and institutions.
The search for the top asset tokenization platform would also take you to Securitize. It offers an end-to-end platform to enable fundraising. The platform provides comprehensive support for all stages in the process, starting from primary issuing to secondary market trading. You can find different types of programs on Securitize for raising capital, such as “Reg. D”, “Reg. D + Reg. S” and “Mini-IPO.”
Businesses can find a listing on Securitize Markets, following the issuance process. The Securitize Markets give you a primary marketplace as well as the flexibility for secondary trading. Investors could easily purchase and sell newly generated digital securities. Most important of all, Securitize is easily the most popular asset tokenization platform with the accreditation of SEC and FINRA.
Another prominent entry among the best platforms for asset tokenization is Polymath. The platform focuses solely on development, issuance and management of digital tokens on a blockchain network. The most noticeable highlight about Polymath is that it has introduced the ERC-1400 token standard, referred to as the ‘security token standard.’ With such a unique token standard, Polymath offered a standardized approach for creation, trading and management of security tokens.
As the best asset tokenization platform, Polymath has served the foundation for creating more than 200 tokens. Now, Polymath is working on introducing a specifically tailored blockchain, Polymesh, for trading security tokens.
The final entry among the various players in an asset tokenization platform list is Harbor, a blockchain-based digital investment platform. It serves as a promising investment platform for alternative assets and maintaining transfers, records as well as ownership of private securities. Harbor serves as an effective tool for streamlining the onboarding and subscription processing alongside opening up new alternatives for liquidity. The platform has grown quickly among the ranks of top asset tokenization platforms with exceptional ease of use.
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As you can notice clearly, there are a lot of options you may come across in your search for the best asset tokenization platform. The trend of converting real-world assets into digital tokens has started to gain momentum after blockchain gained mainstream recognition. Investors and institutions are discovering the exclusive value advantages of transparency, accessibility and freedom from intermediaries in managing their assets. However, asset tokenization is not something you should take lightly. Learn more about tokenization and how you can choose the ideal platform for your needs.
*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!