Larry Fink on Tokenization is the Future of the Next Generation

"I believe the next generation for markets, the next generation for securities, will be tokenization of securities," BlackRock CEO Larry Fink said during the New York Times DealBook event.
We at Fusang have been busy exploring regulated solutions and structures which will allow us to unveil our own unique turnkey tokenisation solution for non-digitally native assets. Along with a custody and settlement system, the aim is to allow for fuss free tokenisation, providing issuers and investors a regulated fuss free marketplace for tokenised assets.
Join us on this journey and come with Fusang as we chart the course to the future. To explore, view our website at: link.fusang.co/lfv
#Fusang #tokenization #digitalassets #securities

[@serkanyildirim9474]

TRUEFI

[@chesstictacs3107]

Can someone knowledgeable explain why is tokenization would be better than the existing system? Why do we need it?

[@MikeyJoker2]

Tokenization of assets, including real estate, indeed has the potential to revolutionize the investment landscape by offering various benefits such as increased transparency, security, liquidity, and accessibility. Here are some key points highlighting the significance of tokenization in the context of real estate investments: 1. **Increased Accessibility**: Traditionally, real estate investments have been accessible mainly to wealthy individuals or institutional investors due to high entry barriers. By tokenizing real estate assets, fractional ownership becomes possible, allowing smaller investors to participate in real estate markets that were previously out of reach. 2. **Enhanced Liquidity**: Tokenization can improve liquidity in real estate investments by enabling investors to trade their tokens on digital asset exchanges. This liquidity can be particularly beneficial for investors looking to exit their positions or diversify their portfolios without the need for lengthy sale processes typical of traditional real estate transactions. 3. **Transparency and Security**: Blockchain technology, which underpins asset tokenization, offers a high level of transparency and security. Transactions recorded on a blockchain are immutable, reducing the risk of fraud and ensuring the integrity of ownership records. Investors can verify ownership, track transactions, and access real-time information about their investments. 4. **Fractional Ownership**: Tokenization allows real estate assets to be divided into smaller, tradable tokens, enabling investors to own fractions of high-value properties. This fractional ownership model provides investors with more flexibility and diversification opportunities, as they can invest in multiple properties with varying investment amounts. 5. **Smart Contracts and Automation**: Smart contracts can be used to automate various processes in real estate tokenization, such as rent distribution, dividend payments, and compliance with regulatory requirements. This automation can streamline operations, reduce administrative costs, and enhance the overall efficiency of real estate investment transactions. In conclusion, the tokenization of real estate assets has the potential to democratize access to real estate investments, improve liquidity, increase transparency, and offer new opportunities for investors of all sizes. While there are challenges and regulatory considerations to address, the continued development of tokenization technology is likely to reshape the way real estate investments are made and managed in the future.

[@al-pianoautorais9285]

I want to know this too

[@crazyhorse4691]

Tokenization of the securities market could offer several advantages over the existing system: 1. **Increased Liquidity**: Tokenization can fractionalize assets, allowing smaller investments from a broader pool of investors. This fractional ownership can enhance liquidity, making it easier to buy and sell securities. 2. **Accessibility**: It can democratize investment opportunities by lowering the barriers to entry. Investors around the globe can access markets that were previously restricted due to geographical, economic, or regulatory barriers. 3. **Transparency**: Blockchain technology, often used for tokenization, provides a transparent and immutable ledger of transactions. This can reduce fraud and increase trust among market participants. 4. **Efficiency and Speed**: Tokenized securities can be traded on blockchain platforms, potentially reducing the need for intermediaries, thus lowering transaction costs and increasing the speed of transactions and settlements. 5. **24/7 Market**: Unlike traditional markets that have specific operating hours, tokenized securities can be traded around the clock, providing more flexibility for investors. 6. **Improved Compliance and Security**: Smart contracts can automate compliance processes, reducing the risk of human error and ensuring that transactions meet regulatory requirements. The security features of blockchain can also protect against hacking and other cyber threats. 7. **Broader Diversification**: By making it easier to invest in fractional shares of various assets, tokenization allows investors to diversify their portfolios more effectively, potentially reducing risk. 8. **Reduced Costs**: Tokenization can lower administrative and operational costs by automating processes such as clearing and settlement, corporate actions, and compliance monitoring. Overall, the tokenization of the securities market could lead to a more inclusive, efficient, and transparent financial ecosystem, benefiting both issuers and investors.

[@OGwhale]

Transparency. You can't hide anything on the blockchain. It's all recorded.

[@jeremyblanchard4379]

Tokenization is the process of representing something (a real asset, a security, a virtual good, etc.) in the form of a digital copy - called a "token" - and store it on a blockchain. How is it better than today? - Transparency: every transaction is recorded on a decentralized and publicly accessible ledger, making it tamper-proof and easily auditable. This reduces the risk of fraud and increases trust for all actors (buyers, sellers and operators) - Ownership and settlement: the settlement of an order is instantaneous. At any point in time, we know exactly who owns what for sure. - Increased liquidity: by tokenizing real world assets, you make them easier to buy on a global market. - Fractional ownership: tokenization allows to make 1 item to be tokenized into several parts and each one can be sold independtly. Those part could also be mixed together with other things to create a sort of ETFs (think about art, real estate, etc.). Imagine being able to buy a "Neo-Expressionism paintings" ETF. - Reduction of intermediaries: auto-settlement of tokens transactions on a blockchain makes transactions quicker. It reduces the need of brokers or some other 3d parties. - Programmability: tokens can be programmed with specific features and rules (cf "smart contracts"). This allows for example automated compliance, royalty payments, and dividend distributions, etc. These use cases are just the beginning. With smart contracts, almost everything can be encoded into a program that runs onchain (on the blockchain), making it in turn more transparent, streamlined, auditable, automated, etc. In short, tokenization will bring a lot of financial innovation.

[@Kaspagraph]

QNT