Tokenization has the potential to be transformative for businesses and
consumers alike — but there are regulatory and technical hurdles to consider.
Entering the “token era” remains a significant leap into uncharted territory for companies,
but this doesn’t have to be the case. Brickken, an up-and-coming tokenizing solution,
now helps companies to create digital tokens backed by real-world assets –– with zero downtime and instant execution.
Cryptocurrencies dominated the 2010s — and so far, artificial intelligence (AI) is
the theme of the 2020s. But there’s another buzzword that’s gaining traction, too: tokenization.
While there have been major trade innovations over recent decades,
New York remains rooted in tradition, with the stock market only open between
9.30 am and 4 pm on weekdays. That’s at odds with the 24/7, digital nature of
the 21st-century economy — a world where business never sleeps and TikTok posts carry more influence than newspaper columns.
To match that speed of life, up-and-coming Web3 companies looking to
capitalize on current trends can confront the limitations of old-fashioned
fundraising models. Barriers can stand in the way of accessing capital,
stymying growth and preventing projects from achieving their full potential.
But tokenization is being touted as a way of navigating this — allowing entrepreneurs to
tap into a wider pool of investors, expand more quickly and offer levels of transparency that
startups stuck in an analog world cannot match.
Moreover, tokenization democratizes investments for individuals, enhancing liquidity
and enabling participation in governance, empowering them with
previously inaccessible financial opportunities and decision-making influence.
Digital assets aren’t the only things that can be tokenized. Imagine transforming
real-world assets like property, fine art, precious metals and even top-shelf whiskey
into tokens! As the world ventures further into the future, tokenization can pave the way for
developers to unleash a world of products, services and DApps that can completely reshape
peoples’ everyday lives. Think about it – voting applications are just the tip of the iceberg!
The challenges of the “token era”
Given these benefits, it is no wonder the Boston Consulting Group recently “conservatively”
estimated that the total amount of tokenized illiquid assets could
reach $16.1 trillion by the end of the decade, representing “a large chunk
of the world’s wealth today” –– seismic changes lie ahead.
But entering this “token era” can still be a massive leap into the unknown for
cutting-edge companies — and a daunting process. Among the benefits of
tokenizing real-world assets, there is a significant challenge –– how can users assess the
quality and credibility of token issuers and projects?
The lack of a standardized regulatory framework and the relative newness of blockchain
technology makes it difficult for investors to distinguish between
legitimate projects and potential scams. This uncertainty undermines investor confidence,
dampening trust and reducing investment flows into the ecosystem.
Without reliable mechanisms to verify the authenticity of token issuers and their projects’ viability,
investors risk falling victim to fraudulent schemes or ill-conceived ventures.
The lack of transparency in the fundraising process exacerbates these concerns.
As a result, potential investors may be reluctant to participate in token sales or investment
opportunities, hindering the growth and potential of the blockchain economy.
Building trust in tokenized assets
Digital asset management platform Brickken recognizes this pressing challenge and takes a
proactive approach to address it. By offering a comprehensive platform that emphasizes
transparency, compliance and accountability, Brickken helps bridge the trust gap
between token issuers and investors.
Through its robust verification processes and adherence to regulatory standards,
Brickken ensures that only credible and legitimate projects gain access to its ecosystem.
Additionally, Brickken has developed its own suite of innovative tools.
These include real-time analytics, token workflow automation and an automated cap table
management system that provides real-time updates on holders and their respective holdings.
The platform also offers automatic dividend payouts, where token issuers deposit certain
tokens into an escrow account, allowing investors to claim dividends in accordance with their ownership.
Brickken’s emphasis on issuer-holder communication and reporting tools enables
token issuers to provide transparent updates on their project’s progress,
financial health and compliance status. Thanks to these data points,
investors can make more informed decisions about where to allocate their resources.
Additionally, the process of reconciliation becomes a one click concept with tokenization,
blockchain and the Brickken token suite. Investments trigger the token purchase,
and dividens are paid based on weight. This means there no need for any comparisons or
additional data entry review as these transactions happen on chain.
Free consultations are also available for tokenholders and businesses interested in beginning this journey.
Empowering global tokenization
Brickken’s CFO Pedro Sandoval believes “the composable nature of blockchain-based
infrastructure will drive the next generation of asset management”:
“The versatility of tokenized assets, with their ability to integrate with
everything from global liquidity to financial and social applications built worldwide,
will revolutionize how assets and investors are managed.”
Brickken’s primary mission is to harness blockchain technology and deliver decentralized
fundraising — allowing firms and investors everywhere to tokenize
real-world assets on a global scale through a standardized process.