Why would anyone want to tokenize anything? What can you tokenize anyway? And what does "tokenizing" even mean? Are these all questions that came to your mind when you read the title? Read on, we'll shed some light on the subject.
The tokenization of assets is the process of creating a representation of a real-world asset on a blockchain as a digital token. Tokens become the ownership right of the underlying asset and enjoy all legal protections of traditional assets and all the benefits of digital utility. Tokens are a securitization for the modern age.
We were one of the first companies in Switzerland to tokenize our own shares and offer them on a decentralised exchange. The first step was to convert our equity shares into tokens. This means that each share of our company is represented by a transferable security token on the Ethereum public blockchain. The special thing about this is that the blockchain and the smart contract, i.e. the program that defines the token, is also the share register, openly accessible to anyone who is interested!
Now to the question of why you should tokenize assets at all. We see 5 important advantages of tokenization: Easier transferability, higher accessibility, greater liquidity, increased transparency and a faster implementation.