In many moments of its existence, a company needs to raise funds to support important strategic decisions. Among the ways to raise capital , have you read about how creating a token can be the best for your business?
Often, the assets that can generate resources that finance the projects do not have a good liquidity to be sold in the formal market, such as real estate or equipment.
Going public is not available to all companies and traditional ways of borrowing are expensive and involve bureaucracy and time.
With an eye on these difficulties and the growing tendency to digitize business , asset tokenization emerged – a fundraising method that consists of transforming assets into fractions of tokens – digital files that are traded on the blockchain.
Do you still have doubts about how positive asset tokens can be for your company planning? Want to know how the process of creating a token works?
Let’s show here how BLOCKBR works!
WHAT ARE THE POSITIVES OF TOKENS FOR YOUR BUSINESS?
The decision to generate tokens from the company’s assets to capitalize the business is certainly not a simple one, after all we are talking about something completely new in terms of the market.
However, the positive points of tokenization in relation to other forms of fundraising are many and important, as they affect important aspects of planning and results.
Let’s talk about some of them.
TOKENIZING GENERATES MORE LIQUIDITY
Selling an asset to raise capital , such as real estate or vehicles, is not a quick operation and depends on a number of factors, especially the market’s mood about the asset’s value. The sale usually happens for a value below the projected.
With tokenization , it is possible to offer the digital asset in fractions . This way, there will be more interested parties to invest in lower value shares, which speeds up the process and maintains the chances of reaching the intended value.
TOKENIZING BRINGS THE BEST RESULTS
Of all the ways to raise funds, trading asset tokens has the best results during and at the end of the project.
- The security and transparency of blockchain operations generates confidence in potential investors;
- Asset splitting increases the universe of interested people and the speed of negotiations;
- The absence of financial expenses and bank costs improves the profitability of the operation.
TOKENIZING IMPACTS THE COMPANY’S IMAGE
We know that companies cannot give up online visibility to achieve better results. Website, blog, social networks, application, service automation are mandatory requirements to compete in the current market.
However, a new wave is emerging. Decentralization of finance , receipts in cryptocurrencies, and asset tokenization are crypto and blockchain features.
Investing in these possibilities conveys an image that the company is in tune with modernity and is always one step ahead to better serve its customers and investors.
There is no way to despise this benefit with so much competition!
Click on our article on the benefits of tokenizing assets and learn more!
KNOW THE BLOCKBR PROCESS TO GENERATE TOKENS FOR YOUR COMPANY!
1 – TOKENIZATION FEASIBILITY
In this first step, we at BLOCKBR will hold a meeting with the company in order to get to know all the details of the objectives for which tokenization is seen as a fundraising option.
- Analyze the asset, its characteristics – veracity, legal feasibility to be offered and if it meets the necessary requirements to be tokenized .
2 – STRUCTURING THE TOKEN
After the token viability is approved, some actions will be taken.
- Create legal and financial agreements for the rights of the token holder ;
- Create an escrow account .
But what is the escrow account ?
We can also call it an escrow account and as the name implies, it is created to serve as a guarantor for both parties, the issuer and the token buyer. It is not mandatory, BLOCKBR will assess whether the asset in question needs this feature.
3 – ISSUANCE OF TOKENS
In this step, tokenization takes the form necessary to make the tokens available. Smart contracts are created within the blockchain , the large, highly secure, encrypted digital environment.
Blockchain works as a kind of public and distributed ledger, formed by informational, sequential and linked blocks, processed by several computers around the world and will be responsible for:
- Keep the information inviolable and secure;
- Approve each transaction made, attesting to the integrity of the issuer and investors;
- Ensuring governance so that tokens are distributed to investors and that the token holder receives the full capital of the operation.
4 – DISTRIBUTION OF TOKENS
Interested people will be able to access the tokenization platform ( BLOCKBR ) or exchanges ( crypto-asset brokerages ) to learn about the asset’s offer and trade, if they wish.
5 – DISTRIBUTION OF TOKENS
This is the last step of the asset tokenization process and that of Governance. As soon as investors inject capital into their token, they should receive what they are entitled to, which can be dividends, interest and the profitability of the tokens.
In order for investors to be able to count on the necessary updates on the progress of the project, it must be available on the platform, with security, agility, efficiency and transparency.
WHICH CATEGORIES OF TOKENS WORKS BY BLOCKBR?
GUARANTEE TOKENS
They are collateralized and backed tokens and bring more security to investors and less risk to regulators. They have a pre-fixed payment amount to the investor and a term. They are mostly receivables and prepayments tokens .
SPECULATION TOKENS WITH BALLAST
Unlike direct investments in cryptocurrencies , which are volatile assets and widely exposed to crypto market speculation, BLOCKBR tokenizes assets that have a speculative degree inherent to their activity, but with backing;
- Payment token (bitcoin) – reserves of monetary value;
- Utility Token (right to use a service);
- Asset Token – right to own a real asset;
- Security Token – right to dividends;
- Equity Token – right to vote on decisions of a company;
- NFT – non-fungible tokens with DeFi tying
BLOCKBR Digital Assets is a fintech that combines technological innovation and digital knowledge to transform physical assets into digital ones, in the asset tokenization process.
The offer of tokenized physical and financial assets, both current and new, is democratic and decentralized, which makes investing safer, simpler and more efficient.
We enable, structure, issue and offer tokens on our platform and beyond. Be aware that tokens depend on feasibility and regulatory factors.
Do you want to tokenize your business or part of it? Do you have a business solution and does it make sense to issue your own token ?
Fill out our form and we will contact you.
BLOCKBR : digital assets driving results and dreams!