Understanding that tokenization is not the same as creating tokens is something that everyone in the world of digital assets needs to know. In this way, there is a greater chance of taking the necessary stance in the face of what the market presents, which makes it possible to take greater advantage of opportunities in the context of digital assets. Although the two terms differ greatly, the confusion between creating tokens and tokenization continues. It is therefore necessary to resolve this incongruity of terms as soon as possible, to prevent you from being one of those who fail to exploit the full potential that tokenization offers, and thus have the possibility of obtaining more results safely and practically!
Why can’t we believe that tokenization is “just” about creating tokens?
Those who believe that creating tokens is the same as tokenization are prevented from surfing and taking advantage of the whole transformation, both in terms of efficiency and the financial security of the phenomenon. At the same time, believing in this association can lead to misinterpretations about the complexity of the scenario, which makes it difficult to choose the right applications and places to find and offer digital assets. To give you a more in-depth view, here are the topics below, which show what is present in asset tokenization and how it goes beyond creating tokens. By knowing this, there is a greater chance that you will be able to more consciously explore everything that this scenario can offer for your income.
Process complexity
The creation of tokens requires a series of complex processes that involve a great deal of care on the part of those offering the digital assets. From the choice of what will be tokenized to the transformation and issuance on the blockchain, the greatest possible attention is required so that everything takes place safely and attractively for future investors. Furthermore, believing in the association between tokenization and the creation of tokens underestimates a large part of the complexity of the processes that must be carried out in the area, which makes it difficult for those who wish to become professionals in the field to take the necessary stance in the face of the challenges. Choosing an appropriate environment is also a key factor in having a better chance of achieving the desired success with asset tokenization. That’s why relying on the BLOCKBR Whitelabel platform is your best choice, because as well as offering our legal expertise, our regulated environment and blockchain can provide the practicality and security you so desire when offering your digital asset options!
Tokenization represents a revolution in the economy
Realizing that tokenization represents a revolution in the economy is also another very important factor in not believing that creating tokens is the same as the whole process. Making this connection means associating all the technological and financial development of the digital economy with just one part of the process, which is the creation of tokens. This idea not only limits the potential that can be exploited, but also makes it very difficult to understand what the tokenization of assets represents for the overall economy. You only have to look at all the developments that have taken place in the crypto market in recent times, especially in terms of security and offers. All the growth in tokenization has allowed very decisive creations, such as the Bitcoin ETF, to become more popular and bring many investors into the world of digital assets. Thus, the search for the stock market is growing and, at the same time, the tokenized economy is gaining new contributors.
There are no “off-the-shelf” products in Tokenization
In tokenization, we can’t treat products as if they were found on shelves, as we do with items in stores. All tokens are offered with their own characteristics that need to be observed beforehand, so that the investor can see whether they meet their financial objectives or not. Regulation, profitability and the offer of the token are points that require a lot of study and care, which cannot be done by accepting that tokenization is just about creating tokens. This understanding cannot be ignored by those who want to become competent and relevant investment advisors in the market.
Less bureaucracy and greater security guarantees
Tokenization represents practically the entire evolution that the blockchain system has brought to the market, while the act of creating tokens contributes to this whole process. In this way, as well as eliminating the need for various intermediaries to carry out financial transactions, token creation has become much more secure, due to technological innovations that try to improve the accuracy of processes. With all the security provided, more revolutionary creations have been able to emerge and become properly established, such as tokenized funds. Through their role, the act of creating tokens on the part of the company responsible for creating the resource (BlackRock) and the way in which investors relate to the applications have undergone good changes.
What is the True Concept of Tokenization?
Tokenization is defined as the transformation of a physical asset into a digital asset with digital representations, which are tokens. These products are marketed using the blockchain, which provides all the security, transparency and practicality necessary for the demands of today’s market. Tokenization, on the other hand, requires excellent preparation of your entire environment or financial structure in order to embrace the full potential of the digital asset. Creating tokens, on the other hand, is only one part of this broad process – extremely important, but not the whole phenomenon. Keeping these two differences in mind has enabled both the growth of the entire financial market in the digital environment, as well as helping investors to find the options that best suit their needs. A great example of this are the Ethereum ETFs, which, as well as gaining a lot of popularity in Brazil, can be an excellent way of getting into stock investments.
Delving into the Tokenization Process at BLOCKBR
Through BLOCKBR, you can learn more about the entire asset tokenization process and, at the same time, take advantage of all the potential structure we offer by creating an account. We also have the Whitelabel platform, which provides an excellent structure for you to enjoy all the practicality and security that a regulated environment has to offer your digital assets!
Migrate to tokenization with BLOCKBR infrastructure, Access Funding with BLOCKBR Plugged-in Investment Advisors.
The unlocking of the capital market, giving access to new types and structures of investments through tokens, is bringing a universe of opportunities every day. Blockchain technology is an environment of high security and transparency, as well as being a backdrop for the creation of new operating models.
To understand which tokenization model and infrastructure you can use in your operations, you just need to understand the opportunities you can take on, whether as a structurer, originator or distributor/investor.
Become an investment advisor for digital assets (structured tokens) through BLOCKBR. You can also be an asset structurer and use our entire risk analysis, legal, technological and commercial infrastructure for distribution with Station or, if you prefer, just raise tokens by investing in your operations or RWA assets. Count on us.
