8MARCH 2024ASSET TOKENIZATION CAN DISRUPT HOW REAL-WORLD ASSETS ARE FINANCED AND TRADEDSome assets like real estate are not easily accessible by investors as those are complex to acquire and require large investment. Asset tokenization allows electronic trading of fractionalized ownership of assets other than just stocks, funds and bonds; it facilitate investors access to illiquid assets (tangible or intangible). Tokenization is the process of converting units/shares/debt of an asset into a digital token on a blockchain.Why tokenization could be a game changer in real estate and infrastructure industry?Project FinancingFor real estate and infrastructure asset owners, a lot of capital is required to build or acquire assets. Traditional value chain leverages institutional investors, typically located in the region where the asset is. Tokenization allows access to global markets, and its fractionalization allows access to retail and high net worth investors, not only institutional.Asset diversificationFor retail and high net worth investors, it is complicated to diversify their investments into alternative investments like real estate with the traditional value chain. Tokenization opens new opportunities to access alternative assets managed by trusted and reputable asset managers. Tokenized assets can represent a group of assets into a fund, or be a single asset (Renowned hotel, building, powerplant, airport, ...) and receive By Yanic Croteau, SVP Information Technology, Brookfield Renewable [NYSE: BEP]OPINIONIN MYYanic Croteau
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