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Location: Level 2/627 Chapel St,
South Yarra VIC 3141
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One of the fast-growing trends in the crypto industry is that of asset tokenization. The tokenization of real-world assets is proving to be a revolutionary concept that boosts the liquidity and accessibility of these traditionally restricted assets. The idea of tokenization is particularly beneficial for real-world assets such as real estate and art, which can now be seamlessly tokenized (digitized) on the blockchain to make them easy to access, buy, and sell online anywhere in the world. In this article, we’ll learn more about asset tokenization and its benefits, along with the example of BitStake - a disruptive real-estate tokenization and trading platform.
Asset tokenization refers to converting physical or digital assets into blockchain tokens. This process is called tokenization. The idea is to make traditional assets such as real estate more liquid and accessible, making them easy to buy, sell, and trade, even at a low price.
Each asset token represents ownership rights or shares in the underlying real-world asset.
The asset tokenization process involves creating a digital record of a real-world asset on the blockchain and then dividing this digital asset into equal fractions such that each digital fraction (represented by a token) corresponds to a fraction of the real/physical asset. Let’s understand this with an example.
Suppose that you want to tokenize a property with a market value of $100,000. Then, you’ll first need to write a blockchain program, digitizing the said property and adding it to the blockchain. Then, this digital file is divided into, say, 10,000 fractions, each of which is represented by a special token. All 10,000 tokens are identical, each valued at $10 and representing a 1/10000th fraction of the property.
A range of tangible and intangible assets can be tokenized on the blockchain to ensure seamless trading and global accessibility. These include but are not limited to
Real Estate
Art pieces
Music
Photos
Collectibles
Content
Commodities (gold, silver, etc.)
Intellectual Property - patents, copyrights, and trademarks
Equity and stocks
The benefits of asset tokenization include increasing liquidity, higher accessibility, and reduced cost of entry.
Fractionalizing big assets such as real estate through tokenization, i.e. dividing a large property into smaller fractions, makes it more accessible to people with all budgets. While not many people can afford to buy a $100,000 house, many will afford a 100th fraction of it for $1000.
This brings us to the second benefit, which is the reduced cost of entry. Real estate is traditionally considered an investment option suitable for individuals with high net worth. However, this changes with the introduction of tokenization. Now, anyone can buy fractions of real estate in the form of crypto tokens.
The third benefit of asset tokenization is enhanced liquidity. Tokenized assets are more liquid because they are accessible to more people beyond geographical boundaries and can be seamlessly bought, sold, and traded online. Because of the low cost, anyone can afford to buy these digital assets.
Additionally, tokenization is a great way to enhance the security of your assets through the means of proof of ownership, as each asset token on the blockchain stores ownership information along with a record of all transactions for its associated physical asset. This helps maintain robust transparency in all real estate transactions and reduces fraud.
For anyone seeking to digitize or tokenize their real-world assets such as real estate, there are many options now, thanks to the increasing popularity of tokenized assets.
BitStake, a recently launched real estate asset tokenization and trading platform, offers a globally accessible, highly secure, and convenient marketplace to buy and sell tokenized real estate fractionally. Here’s all you need to know.
BitStake is an online platform providing asset tokenization services for a range of industries, including real estate. The platform particularly allows real estate investors, developers, and enthusiasts to come together to engage in next-gen real estate tokenization and trading by leveraging blockchain and other advanced technologies.
BitStake introduces a highly secure, efficient, and accessible platform for real estate tokenization and trading. It offers a range of services, including tokenization of real estate projects, such as land, houses, villas, and other property types, on the blockchain. This aims to enable owners to sell properties fractionally.
Real estate investors or buyers can use the BitStake platform to find and buy properties fractionally. The platform enables users to buy shares in a property through crypto tokens. Additionally, it offers features like crypto payments and investment performance tracking for its platform users.
BitStake is a brilliant example of a highly innovative tool for asset tokenization and trading. It can be used by property owners, traders, buyers, or investors.
For property owners and developers: seamless real estate tokenization, online listing with global access, and selling fractions (shares) of properties.
For real estate investors and buyers: Search for and buy digital real estate fractionally. Buy properties globally. Minimum investment of one token.
In addition, BitStake is your gateway to a global community of real estate developers, investors, and buyers, called Owners Club.
Location: Level 2/627 Chapel St,
South Yarra VIC 3141