I've gone over tokenization of real world assets a few times in the past but it's gaining more and more momentum and something I don't think enough people follow and very well could be missing out on possibilities. That's why in this article we are going to look into what tokenized assets are and what's new on the table for investors in this niche.

Real World Assets (RWA)

The main focus of this is both retail and institutional investors. One thing crypto, blockchain are attempting to do is making it a more even playing field for all investors. Instead of only accredited investors getting better perks these perks should instead apply to all which is happen via crowd funding projects and investments apps we see today such as Ark7

The reason why many of these companies and now issuing digital assets on blockchain is the speed, security and low fees they have compared to current means of doing business. Normally when investing this way you have a hard asset such as a house in which can take months or even years to collect capital and divide it out. I honestly am starting to feel like REITs on the stock market are going to have a real run for their money if they don't start getting in on this digital real world asset train.

Types

Currently there are many types but the main ones getting the most traction right now would be digital bonds, ledgers and Mortgages.

But there's no reason why it couldn't branch out into more physical assets and it has to some extent from smaller companies. Things such as gold, silver, diamonds and even uranium (Look up Uranium3o8).

The main focus now for them are treasury bonds which are a rather safe bet for testing such a thing before expanding into other areas. Treasury bonds are a rather safe investment and are currently paying over 5 percent! which is often better now than the rates of return in the stock market with high risk.

It's also an area we have seen many stable coin issuers like Coinbase, Tether and Paypals token start to invest into.

Another aspect of this would be Citi who is starting to pioneer into corporate bonds in the digital landscape now investing a total of 400 million in digital assets in this area.

The Future

It's really only a matter of time before a vast majority of assets become digital in nature but do represent a real hard asset. It simply makes ownership, proof of ownership and moving or trending of the asset far easier and much less expensive compared to bankers paper work fees. Have you bought a house recently? Just look at all the crazy fees that come with it that aren't priced into the house it's actully ridiculous.

However with this blending there still is going to have to be a middle man that stores and manages the assets to make sure they are valid and secure for trading.

Posted Using InLeo Alpha