‘Abstract’
You can buy memetic physical goods for around $25 on the Solana blockchain. The democratization of access to the tens-trillions-dollar asset tokenization markets is no different.
We are at the center of an exciting digital financial future. Historically risk-averse global financial institutions are now beginning to recognize cryptocurrencies as a legitimate asset class. Cryptocurrencies are gaining traction as a potential asset class. Cryptocurrencies offer several advantages over traditional financial systems, especially in terms of transaction fees. Traditional card payments typically involve a 2–3% fee, which can eat into a company’s profits. Cryptocurrencies, on the other hand, can facilitate transactions with much lower fees or even zero fees.
Overall, cryptocurrencies have the potential to revolutionize payments in the global economy, but their exact role is yet to be determined. It depends on how they overcome current challenges and how various players, from individuals to institutions, adapt to this evolving technology.
We’re at the forefront of bridging the gap between real-world assets (RWAs) and the cryptocurrency ecosystem. By integrating real-world assets (RWAs) into e-commerce, we’re unlocking the potential to create trillions of dollars in value. We believe that programmable money and payments in the blockchain real economy have the opportunity to reshape the global economy. It will be interesting to see how this technology evolves and shapes the future of the global economy.
In 2022, we embarked on a groundbreaking journey to revolutionize the real economy using blockchain technology built on Shopify ecommerce. As an experienced Shopify partner with over 10 years of expertise, we’re at the forefront of the real-world assets (RWAs) market, delivering asset tokenization and blockchain real economy solutions.
From tokenized bonds and funds to private equity, cash, stocks and real estate, more and more institutions are launching and expanding tokenized products. “Boston Consulting Group projects that even using a conservative methodology, asset tokenization would be a US$16.1 trillion business opportunity by 2030. In a best-case scenario, that estimate goes up to US$68 trillion.”
The asset tokenization market is promising, but in reality, it is complex and challenging. Developing a robust secondary market for tokenized assets is also essential, especially for less liquid assets like real estate. For tokenized real estate, platform integrity is a major issue, and we emphasize that without a trusted institution behind the platform, the market is susceptible to potential risks.
Secondary markets for tokenized assets can foster innovation, attract investment, and drive economic growth. However, achieving a functional market is a complex and ongoing process that requires collaboration between regulators, industry players, and technology providers.
If real estate with no value appeal is tokenized, the responsibility for losses typically falls on the token issuer or platform, especially if fraud or negligence is involved. Tokenizing real estate that has no investment appeal or value can indeed be considered fraudulent if done intentionally to mislead investors.Transparency and proper due diligence are key to preventing such issues.
Platforms involved in tokenization should be held to strict standards, with clear asset valuations, proper legal backing, and oversight to ensure the underlying real estate has legitimate value. It’s important to ensure that any platform offering tokenized assets has the necessary transparency, legal backing, and credible oversight to safeguard investors’ interests.
Fraud in real estate ownership, trading, and financing is already a serious problem in traditional capital markets, and tokenization could exacerbate these risks if proper safeguards are not in place. Despite these challenges, fractional ownership could democratize access to real estate investing.
‘The potential benefits of asset tokenization are significant, including increased liquidity, fractional ownership, and improved transparency. As the technology matures and regulatory frameworks develop, we can expect to see increased adoption and innovation in this space.’
“From the Wanted Project White Paper”