Asset Tokenization

Tokenizing assets is not just the buzzword for blockchain application but an entire blue ocean. Using smart contracts, an asset can be tokenized on the Ethereum blockchain, into a single title such as in the case of ERC721 non-fungible tokens (NFT), or into smaller fractions such as ERC20 tokens. The same can be done on various other blockchains.

These tokens follow a standardised compatible structure which allows them to be traded seamlessly on digital asset exchanges that are generally universal and stay open on 24/7/365 basis. With Zetrix’s regional focus and a common platform supporting RCEP, the cross-border movement of tokenized assets will be boosted significantly, liberalise consumer demand, and open up new asset markets — which are not possible under conventional market structures due to the high friction costs between intermediaries.

For example, a piece of illiquid real estate or bulky property can be tokenized into smaller portions to make them more affordable and accessible to retail buyers around the world. Subsequently, any cash flow generated by real estate can be separately tranched or bundled, and distributed to the token holders. Token holders are also free to trade the tokens on the secondary market, and enter or exit as they please.

Another example would be tokenizing the ownership of an artwork or intellectual property. We can create an NFT to digitally represent the ownership of the artwork and the specific rights attached to it, and such NFT can be transferred in the open market. The NFT revolution that is currently taking place has graduated from mere collectibles, and can be seen from high fashion to sports, publishing to entertainment, and even full-fledged ‘metaverse’ environments for the future.