Real asset tokenization and cryptocurrency are unique subclasses of digital assets that utilize cryptography. This advanced encryption technology ensures the authenticity of crypto assets by eliminating the possibility of counterfeiting or double-spending.
A cryptocurrency is a native asset of a blockchain network that can be traded, used as a medium of exchange, and stored as value.
Tokenized assets, also known as tokens, are units of value created by blockchain-based organizations or projects on top of existing blockchain networks.
The primary distinction between the two digital asset classes is that cryptocurrencies, such as BTC or ETH, are native assets of a blockchain. On the other hand, Tokens are created as part of a platform built on an existing blockchain.
Real asset tokenization is issuing security tokens (a type of blockchain token) representing real digital tradable assets. Like an initial coin offering (ICO), security tokens are issued via a security token offering (STO) process, through which investors can buy payment, equity, or utility tokens.
UFUND also offers tokenized assets and connects the real economy with digital securities. As a result, digital assets are now contributing assets for the GDP and per capita income.
Real asset tokenization is backed by real-world assets of organizations that provide lucrative investment opportunities to new investors seeking something new to add to their portfolios.
Months before, the SEC also considered a tokenized asset a legal investment. Therefore, UFUND tokenized assets are also compliant with US SEC law.
If you want to know how to tokenize an asset, the first thing to understand is the role of smart contracts in turning real assets into digital assets. Digital tokens backed by underlying assets are controlled and executed using a smart contract. The conditions of the parties' agreement are put into lines of code already present on the blockchain network, making the smart contract a self-enforcing and self-executing contract.
Once the contract conditions are fulfilled, tokens can be delivered to investors directly through a smart contract, offering participants transparency, accuracy, and efficiency by making contractual terms and historical data publicly available.
Asset tokenization refers to the development of user-friendly coding that highlights the main features of the asset while giving the user specific means to interact with the digital representation of the asset.
The process is simple. Businesses/Individuals enrolled as campaigners can create listings with descriptions, images, quantity, size, color, audits, etc. while setting a price with the desired payment method (crypto or fiat currencies).
Long descriptions and images are hosted on IPFS; however, the listing will take place after checks conducted by our experts on legal ownership, reality, and valuation. Therefore, the listing will have its unique ID on the platform. Issuance of token types and related smart contracts will be instructed by the Campaigners and stored on the designated blockchain.
Real asset tokenization is not merely a concept but an effective investment alternative to stocks. Therefore, it is easy to back your organization or real-world assets into tokenized assets. UFUND offers to list real-world assets into tokenized assets for organizations and is a wise investment alternative for investors.