Process of tokenization
In this section, we’ll present the process of tokenization, discuss what can be tokenized, and provide a basic example of the tokenization of assets.
Almost any asset can be tokenized and presented on a blockchain, such as commodities, bonds, stocks, real estate, precious metals, loans, and even intellectual property. Physical goods that are traditionally illiquid in nature, such as collectibles, intellectual property, and art, can also be tokenized and turned into liquid tradeable assets.
A generic process to tokenize an asset or, in other words, offer a security token, is described here:
- The first step is to onboard an investor who is interested in tokenizing their asset.
- The asset that is presented for tokenization is scrutinized and audited, and ownership is confirmed. This audit is usually performed by the organization offering the tokenized security. It could be an exchange or a cryptocurrency start-up.
- The process...
