Tokenizing Assets Via a Tokenization Platform: 5 Easy Steps to Follow

Since its inception, Bitcoin has opened up a glut of opportunities for revolutionary changes in the way investments and assets are issued, managed, and transacted. Tokenization, as a means to digitize an asset, is becoming a breakthrough in many business sectors. Tokenization of assets on the blockchain provides a wide scope for the growth and diversification of assets in the market.

So, what is asset tokenization? It is the process of creating a digital image on the blockchain for various real assets, such as securities, bankroll, paintings, investments in companies or projects, digital media platforms, loans, precious metals, collectables, or real estate shares. Tokenization has certain peculiarities. On the one hand, there is no need for intermediaries, which leads to reducing transaction costs. On the other hand, you can easily trade illiquid assets. The core principle of tokenization is to create a digital counterpart for real values in order to quickly and safely work with them.
Asset tokenization in 5 steps
STEP 1. Selecting an asset. Your first task is to decide what you are going to tokenize. We recommend selecting an asset that has a great market value because it is easy to understand the price policy and you will be able to set the price for tokens at an appropriate level. If your asset is uncommon, it won’t be easy to assess it on your own.
STEP 2. Creating a business model and a concept. Next, you should develop a clear-cut strategy. You must contemplate potential sources of income and look into the details of financial arrangements, as well as envisage where to get the pool of clients.
STEP 3. Choosing a platform for asset tokenization. Tokenization can be carried out on any platform designed for this purpose. Anyone can issue tokens that transfer the ownership rights of any asset. There’s a wide variety of online tokenization platforms to accommodate the needs of both developers and issuers.
STEP 4. Examining the legal rules. This can be quite challenging, but it’s essential that you take into account the laws regulating digital assets and blockchain technology and follow them without deviation. The best solution would be to consult with a legal expert, who can guide you through a complex regulatory framework pertaining to cryptocurrency operations.
STEP 5. Publishing a whitepaper. Last but not least. You should write and post a whitepaper that succinctly describes why your token has been developed and what advantages and profits it can bring to potential customers. It’s advisable to compile a thorough analysis of your work and specify the discoveries you came across while creating your project.
How to choose a tokenization platform?

Let’s run through some of the critical issues that should be discussed when choosing a platform for tokenization:

• How many token sales have already been held on this platform?
• How are registered security holders being tracked while trading on the secondary market?
• Does the platform have the necessary tools to carry out KYC/AML checks both during token issuance and when trading on the secondary market?
• Is the platform licensed as a broker-dealer? If any of the above services are not included, does the platform provide other capabilities, and how are the missing features compensated?

At present, there are a number of online tokenization platforms, and each differs in terms of its specialization, functionality, tools, positioning, tokenization methods, tariff system, etc. Let’s look at some of them, and analyze the key differences and main characteristics.
Harbor. It is an open-source protocol that allows traditional investment classes to migrate to the blockchain. Harbor standardizes the compliance control process for companies that tokenize their assets. This digital platform for alternative assets uses blockchain technology to enforce contracts for the exchange of tokenized assets. Dealer brokers and issuers can work with the platform to list any assets they wish to sell. Some of the features of the Harbor platform include private marketplaces, investor management services, instruments for issuing and selling private securities, and the ability to pay digital dividends.
Binaryx. Not so long ago, this cryptocurrency exchange launched a tokenization platform that aims to help small and medium-sized businesses attract investments. The platform offers a simple, transparent, and affordable tokenization process. Binaryx’s clients convert their real assets into tokens and list them on the exchange through a single platform. The competitive advantage of Binaryx is that the company combines asset tokenization services and the ability to list digital assets on an exchange within one platform. With Binaryx, businesses can gain the support of their communities and attract private investors from all over the world.
Tokensoft. This is the asset tokenization project and technology platform for issuers of blockchain assets, which provides the technology to create digital assets, digital securities, stablecoins, and wrapped tokens. Tokensoft offers launch tools, token sales, and a storage solution to securely administer ERC-1404 compliant securities. Among the available solutions are Decentralized Finance, SEC-Registered Offerings, Blockchain Projects & Token Sales, Real Estate Funds and Sponsors, Security Tokens.

Tokenization is a global trend that is increasingly catching the eye of the international business community. It catapults asset management to new heights. Tokenization greatly simplifies access to liquid markets, making trading accessible to everyone. It also opens up opportunities for entrepreneurs to develop businesses faster, attract financing, and build long-term and transparent relationships with investors. Tokenization empowers everyone to be an investor.