What is Tokenization?

Tokenization refers to the conversion of ownership rights to an asset into a digital token on a blockchain. Each token has its own value.

What is RWA Tokenization?

RWA Tokenization involves creating tokens on the Blockchain and assigning them to real-world assets that already exist or are currently under construction/development. These tokens can represent an interest in the company/project and/or can also be used to raise capital towards development investments, allowing a wider range of investors and developers to participate in various markets.

In other words, tokenization is a way for an organization to raise capital using a crowd sale, which is basically the same thing as crowdfunding, but with tokens on the Blockchain. The goal can be more easily attained if funding is made available in such a way. The role of the tokens in this case is to act as the equivalent of stocks. A token can thus be used either as a loan, as a share of a company, or as ownership of a specific property.

Below is a comparison between today’s form of transacting and how it compares to Digital Securities.