26 Nov Tokenization: Use Cases Of Blockchain In Finance
In 2017-2018, many projects began raising money to create platforms for the trading of tokenized real estate, precious metals and works of art. Most of them crashed. But this has not put an end to the actual idea.
The transfer of “real world” assets to blockchain (tokenization) is one of the current trends in the use of blockchain for finance. Tokenization is usually understood as the process of replacing items of value (such as money, stocks, etc.) with tokens that reflect these values.
For example, to tokenize $1 million, the issuer must first obtain permission from the regulator and then deposit this amount into a bank account and issue 1 million tokens, each equivalent to $1. These tokens can be traded on exchanges without an asset being delivered, but under certain conditions, the token holder can present them to the issuer and receive dollars in their account.
Read full article at forbes.com.