Tokenization of Assets
We have extensive experience in the tokenization of assets and advising on the creation of asset/backed and equity-linked securities tokens, in particular tokenized venture capital funds.
Tokenization is the process that transforms rights to an asset (such as an interest in a physicl asset or a share in a company) into a token on the blockchain. Using blockchain technology solves most of the problems inherent in traditional securitization, and is considered an emerging industry worth trillions of USD.
Tokenization is the next generation of securitization, the transformation of illiquid assets into tradable stocks that are backed by a pool of standardized single-type assets.
In the same way in which securitization converts assets with low liquidity into more liquid security instruments that can be traded both on the trade markets and over-the-counter, equity-linked tokens typically can be traded more easily than traditional equity in companies, which may be tied up for years. Equity-linked tokens can be sold after a lockdown period ends. As they are sold online, they are easier to buy and investors are able to invest in them directly instead of going through funds.
We are presently advising several international venture capital funds on the tokenization of their business model and the creation of platforms for the tokenization of portfolio companies.