The transformative power of asset tokenization

Asset tokenization has long been considered one of the most interesting applications of blockchain technology. Back in June 2019, United States investment banking giant BNY Mellon stated it has the potential to “change dynamics dramatically” for investors and open up previously unattainable opportunities.

Real estate is an inevitable place to start. Tokenizing properties can open the door to fractional ownership, allowing individuals to buy a fraction of a building. The volatility of global markets has shown why diversification is so important – but until recently, the high cost of real estate made it inaccessible to many.

The benefits may not stop here either. It can take up to six months to close a home purchase, all thanks to a time-consuming, torturous, and surprisingly paper-based process. Tokenization has the potential to accelerate, while offering a higher level of trust and transparency. Increased liquidity can eventually revitalize markets, making transactions frictionless.

There are also consequences in the business world. Franchising has proven a very popular way to expand brands—with McDonald’s, Subway, and Chick-fil-A just a few of the fast food giants allowing entrepreneurs to open their own stores. However, here’s the problem: there are huge costs involved with this kind of investment. According to the company’s HR ADP, startup costs can be as high as $5 million — an amount few people can raise on their own. Fractional ownership achieved through tokenization can remove barriers to entry, providing real benefits to every participant in such an ecosystem.

Elsewhere, tokenization could offer a modern twist on crowdfunding, allowing cutting-edge products to hit the market with day-to-day consumer support. Embracing blockchain can enable entrepreneurs to reach a wider range of investors, while providing higher levels of liquidity. It could also change the way expensive infrastructure projects are initiated, especially in the renewable energy sector. This could not only unlock new funding in the race to cut carbon emissions, but could lower household bills.

On the star-studded streets of Hollywood, tokenization is already making its presence felt. From film production to music copyright, passionate fans can now bet money on the creations they love most. It can also free content creators from the constraints of record labels and film studios, allowing them to take risks and control their destiny. Better yet, it also means anyone can become a celebrity. One interesting use case in this arena relates to Stoner Cats, an NFT-backed animated series launched by Mila Kunis in 2021. It sold out in just 35 minutes.

Making tokenization usable

One could argue that this is just the tip of the iceberg when it comes to potential use cases for tokenization, but there are challenges standing in the way. One is regulation, and the fractured framework in jurisdictions around the world means a lack of cohesion for employers looking to embrace this technology.

It is also a very new space, with limited historical data and associated with volatile markets. That’s where platforms like Brick enter. Similar to Shopify enabling customized ecommerce stores, Brickken enables tokenization businesses to create their own custom Token Stores, further increasing the demystification of tokenization. The aim of this project is to help digital assets to be created, sold and managed in a seamless manner. By offering an array of user-friendly tools and features presented in an all-in-one platform, Brickken empowers enterprises to easily embrace tokenization and incorporate a 21st century touch into their business model.

One of the most significant use cases for the Brickken platform is real estate tokenization. By leveraging blockchain technology, Brickken facilitates fractional ownership of real estate, making real estate investment more accessible and inclusive. Through tokenization, investors can obtain fractional ownership tokens that represent a portion of the property’s value. This approach opens new avenues for liquidity, reduces barriers to entry, and enables a more efficient and transparent real estate market.

Beyond real estate tokenization, Brickken offers companies the ability to tokenize their equity or debt instruments, revolutionizing the way capital is raised. Through the platform, companies can create digital tokens that represent equity or debt instruments, enabling investors to participate in business growth and success. This approach opens up new opportunities for both startups and established companies, provides greater access to capital and promotes a more inclusive investment ecosystem.

Additionally, Brickken addresses the challenge of limited capital in renewable energy investment by tokenizing projects, promoting fractional ownership and accessibility. Investors can now buy fractional shares, overcome financial hurdles and support sustainable initiatives.

Simplifying life through tokenization

Billed as a white-label, no-coding solution, Brickken says it offers a global partner ecosystem to ensure every client is supported every step of their journey, holding their hand while fractionalized assets.

A key component of this ecosystem is the platform’s native token BKN, which gives users access to a variety of services and benefits. Token holders can participate in tokenized investments, gaining exposure to real estate, art, intellectual property and other exciting asset classes. In addition, the BKN token gives users exclusive access to premium features, discounts and gifts on the Brickken marketplace. Holders can also participate in governance decisions and shape the future direction of the platform.

Brickken’s main point is this: While tokenization may not have gone mainstream yet, there are already interesting examples where tokenization is adding real value to people’s lives.

Ludovico Rossi, Brickken’s chief revenue officer, said:

“Fractional ownership is a transformative development of the sharing economy, and asset tokenization is a powerful proponent of it. This paradigm shift will shape our future, going beyond the impact of the sharing economy as we enter an era where fractional ownership is the norm. Get ready, the wave is approaching.

To facilitate the adoption of tokenized assets, Brickken launched it Token Issuer Academy, which provides comprehensive guides, tutorials, and tools for successful enterprise tokenization for individuals and businesses. By joining the Academy, participants will gain essential knowledge on how to create, distribute and manage tokens using the Brickken Token Suite, enabling them to harness the potential of blockchain technology and decentralized finance.

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