What is tokenization

Tokenize an asset or tokenize real states? Call it what you prefer, tokenizing is still dividing an asset into different parts. However, there are assets that cannot be divided, such as a building or a stock. So how do we divide it? To do this, we create a digital asset called a token that represents it. The evolution of this concept together with the technology that supports it has made us refer to the world of tokenization as something easy, reliable, transparent and secure. 

Tokenizing an asset means dividing it into smaller parts that are represented by tokens that own ownership rights. Each of these tokens is digitized to be traded in the online universe and stored in the wallet of each investor. 

Tokens offer globality and transparency!

Process of tokenizing an asset

Can it be applied to any tangible or intangible asset? The answer is YES. Intellectual property, shares, works of art, real estate... Everything you can imagine can become a digital asset.

But none of this would be possible without the presence of blockchain technology, given that the tokenization process works with the registration, traceability, and instant transfer that the blockchain allows. Tokens are accounting units that allow immediacy in operations.

These digital assets are issued on a blockchain and are, at first, in the issuer's portfolio. That is, the owner of the property. When it decides to put them up for sale, they begin to raise funds for those assets, a process that can be done in two different ways:

• Manually.  The issuer sends the digital assets to the buyers when it receives the payment. (Our process)
• Through smart contracts.  The buyer sends cryptocurrencies and the contract automatically transfers the tokens to them. 

And finally...

The great advantage of the process of tokenizing an asset is that it allows something with a lot of value to be distributed among different people and have greater liquidity in the market. If you have bought an asset or a property and you want to sell it, you must find a person who has that amount of money. On the other hand, if you have a tenth of the tokens that represent that building, you will be able to find a person much faster, given that the amount is smaller.