Blockchain, tokens or NFT are relatively new terms that for many may sound a little mysterious. Nowadays, blockchain technology has a significant impact on tokenization and gives entrepreneurs a wide range of possibilities. In order to fully use the potential of tokens, a tokenization platform is needed. What is it and how it works?
Converting assets into tokens
Stocks, bonds or checks are the company’s securities that serve as instruments which main role is to represent physical assets. Along with the proliferation of blockchain technology, it is possible to convert those assets into tokens. The process is called tokenization and takes place on tokenization platform. Compared to traditional trading, digital method has at least three advantages: speed, transparency, and security.
Alternative to traditional marketplace
The main goal of tokenization platform is to connect authorized investors with trusted companies. In order to use the token – meaning to sell it or preserve as a protection – it needs to be issued. This is what a tokenization platform serves for. Nowadays, platform operators usually offer much more than that.
Easy tokenization of assets
Running a company requires a lot of activities. Those include hiring an accounting professional, taking care of finances, taxes, audits or funds. Tokenization platform creates the opportunity to easily tokenize the assets or services. The whole process makes the management easier and significantly reduces the chance of data theft. Banks and regulators often require verifying contributor’s identity and residency. Easy tokenization of assets is the biggest advantage of tokenization platform. It helps to save valuable time spent on verifying thousands of documents.
Easy sale and issuance
Professional tokenization platform can easily automate the process of sale or issuance of the tokens. A successful sale is a result of reasonable management that can be obtained on the platform. It is a highly secure place that ensures a seamless process, mainly because of a complete suite of technical tools, white label website and smart contracts.
It is worth mentioning that among thousands of companies, there are many startups that use the tokenization platform nowadays. They find it extremely easy to automate the fundraising and token creation process.
A solid tokenization platform includes a well-oiled system of software modules. Most important are: integration with payment systems, integration with KYC and AML systems, security management, mobile and web applications, and the token lifecycle management.
Today’s technology becomes more and more sophisticated and requires a stable support in a digital reality. Since the blockchain have emerged, it simplified the life of companies and customers. Tokenization has brought transparency to the industry and plays a vital role in digital world. The new technology is undoubtedly a chance for millions of entities all over the world to make profits via tokenization platforms.