Op-ed: Tokenization is a life-saving pill for global finance’s diversity problem

When the subject of financial markets and their future is raised, the implementation of blockchain technology and tokenization of assets gets mentioned a lot. In light of the progressing digitization of many industries, the technology has the potential to democratize investment possibilities, open up new financial opportunities, and in doing so, revolutionize the global economy.

This is a promising avenue to explore, as the future of money is doubtlessly going to be diverse and focused on catering to any number of needs from various audiences. It is implausible that there will be a one-size-fits-all kind of platform or solution.

Let’s explore the premise of tokenized assets more closely to see why they can fundamentally transform the way people approach finances globally.

Tokenization — a tool to democratize financial opportunities

The general premise of tokenization involves giving people much greater access to wealth and financial options by introducing the concept of fractional ownership of assets. In other words, investors get to buy a portion of a high-value asset instead of having to buy the whole thing that could very well be beyond their financial means.

Let’s take a look at a practical example: rising costs in the real estate market have made access to affordable housing progressively more challenging over the years. In the UK, it has already become so expensive as to be a privilege available only to those who have hereditary wealth from their parents to rely on.

By digitizing and dividing real estate properties into tradable tokens, ownership stakes can be fractionalized, enabling people to invest in portions of properties rather than having to purchase the whole thing. This allows for the democratization of access to affordable housing by lowering entry barriers and giving opportunities to investors with limited financial means to enter this market.

The same principle applies to other sectors as well: as it becomes easier for people to buy, sell, and trade fractional ownership of assets, tokenization serves to break down entry barriers and enable greater financial opportunities to a wider array of audiences. This includes Go to Source to See Full Article
Author: Petr Kozyakov

Did you like this?
Tip BTC Newswire with Cryptocurrency