The emerging model of tokenizing assets is set to be a major focus in the upcoming New York City Consensus Week. This event will be bringing together leading Blockchain Technorati who will examine the emerging business model of digital representation of tangible assets. The delegates would explore in-depth whether it is an emerging trend that everyone should be aware of in the business field to avoid being outcompeted by peers.
The Use Of Digital Tokens Is At A Tipping Point
According to Nils Veenstra, who is the director at BECON- a firm that focuses in Blockchain events and research, no one seems interested in the fact that Cryptos are set to be considered as securities in the near future. However, the idea that existing tangible assets could become Tokens is in itself exciting and drawing the attention of everyone.
Veenstra further adds that numerous studies by his firm, BECON, shows that the interest is mainly coming from institutions in the technology field. Further, property development and asset and wealth management areas are also keenly following the expected change in the functions of Digital Tokens.
Veenstra has since embarked on holding a series of conferences across Asia and Europe to sensitize everyone about the growing use of Cryptos for digital representation. The premiere of this events is set to kick off in New York City just before the NYC Consensus Conference.
What’s The Essence Of Digital Representation?
A majority of financial experts believe that tokenizing assets improves liquidity. This is because conventional real estate assets or company shares are very illiquid which makes it difficult to transfer ownership. Further, sellers and buyers are forced to look for each other through networking which can create market imperfections and distort the market.
The essence of tokenizing physical assets is that it allows efficient and simple ownership transfer and verification in real time on Blockchain-based platforms. Further, enthusiasts believe that the use of DLT can allow regulators to enforce compliance in line with the transparency that DLT proffers.
Other benefits include the elimination of traditional international barriers for investments as well as global GDP growth.
Further Elizabeth White, President of The White Company that offers Blockchain payment solutions adds that the use of DLT makes it easy for investors to know how much equity a company possesses as well as eradicating confusion in the cap table management.
Why Tokenizing Assets Is Set To Be Revolutionary
Beyond the intrigues of financial and technical efficiency, the allure towards a different strategy of managing tangible assets is also dictated by societal inclinations.
The social logic is that people seek greater social status by looking for more money. Lauren Rhue, Exxon-Wayne Calloway Rising Faculty Fellow and Assistant Professor of Information Systems and Analytics at the Wake Forest School of Business explains.
Lauren adds that this social wiring causes us, humans, to gravitate towards making assets liquid by turning them into money. Hence, the use of Cryptos in Digital Representation is offering exactly that and everyone is likely to jump on the bandwagon to avoid being left behind in the social ranking.