Welcome to Securitize

The Tokenization Process

Securitize is the leading tokenization company pioneering access to the traditionally exclusive world of private markets by tokenizing real-world assets (RWAs).

Learn more about the technology, how it works, and why it matters for asset managers and investors alike.

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What Is Tokenization?

In simplest terms, tokenization is the process of issuing a digital representation of an asset on a blockchain. It involves converting the ownership of an asset—such as a venture fund or private equity fund —into a digital token stored on the blockchain. The token represents the asset and is used to track and transfer ownership of that asset.

Tokenization also provides access to entirely new financial markets, allowing assets that have historically been siloed in disconnected environments to exist in a common space.

Ultimately, tokenization aims to bring efficiency, liquidity, and accessibility to traditional, previously illiquid markets.

Real Estate

Royalties

Loans

Guarantees

Contracts

Commodities

Invoices

Fine Art

Money Market Funds

Private Credit Funds

Venture Funds

40 Act Funds

What Are Real-World Assets (RWAs)?

The term real-world assets (RWAs) refers to tangible and intangible assets. Or simply put, anything that has value due to its utility, scarcity, or demand in the real world.

These assets are part of traditional financial markets and are regulated by various government agencies and organizations. These assets play a pivotal role in diversifying investment portfolios, offering stability, and serving as a hedge against market volatility.

With the growth of the digital space and the increased use of blockchain technology, more and more people are gaining access to real-world assets, which is opening up new markets created through tokenization.

What Are the Benefits of Tokenized RWAs?

Enhanced Liquidity. Traditional real-world assets often lack liquidity, making them less attractive to certain investors. Tokenization enables the fractional ownership of these assets, allowing investors to buy and sell digital tokens representing portions of the asset. This fractional ownership enhances liquidity, making traditionally illiquid assets more accessible.

Accessibility. RWA tokenization democratizes access to investment opportunities. By breaking down the barriers to entry, it enables a broader range of investors to participate in asset classes that were historically reserved for high-net-worth individuals or institutions.

Transparency and Trust. Blockchains are decentralized, digital ledgers known for their security. Tampering with a blockchain’s data is incredibly difficult because the ledger is shared and verified by all of its users. This provides investors with full transparency into the past transactions of an asset, as well as undeniable proof of ownership.

Efficiency and Cost Reduction. The use of blockchain technology and smart contracts streamlines administrative processes, reducing the need for intermediaries and associated costs. Smart contracts automate various aspects of asset management, including dividend distributions, governance, and ownership transfers.

SECURITIZE X TOKEN TERMINAL

Asset Tokenization 101

CEO and Co-founder, Carlos Domingo, walks through the benefits of tokenization for all involved stakeholders, using different products available on Securitize’s platform.

What Is the Future of Tokenization?

In the long term, we believe tokenization has potential to transform market structure by enabling access to a wider range of investment options to more investors – with greater efficiency and at lower cost.

By 2030, illiquid tokenized assets have been estimated to reach $16.1T & compose 10% of global GDP¹

Rapidly growing dedicated talent pool; since 2019, long-term active contributors have grown at an annualized rate of 52%²

Digital asset infrastructure appears poised to rapidly mature as 2021-2023 saw $79B in aggregate venture capital investment³

With these predictions, it’s no surprise that tokenization is expected to continue to gain momentum and adoption in the traditionally outdated world of finance. For investors, this also means a much wider set of opportunities to pursue.

OUR PARTNERS

The Securitize Ecosystem

Bringing tokenization benefits to market through this group of diverse TradFi and DeFi institutions across chains, custodians, exchanges, market makers and more.

LET’S TALK

We Look Forward To Hearing From You

Speak with our team to learn more about our tokenization services and products.

¹ Source: Boston Consulting Group: Relevance of on-chain asset tokenization in ‘crypto winter’.

² Long term active contributors are defined as developers who are active for 2+ years. Source: Electric Capital: Developer Report 2023, as of Dec. 2023.

³ Source: Galaxy Digital: Venture Capital Raised by Blockchain Firms report, as of Dec. 2023.