Introduction
The digital way of ownership is new but intriguing. Asset tokenization is the new and improved method of digitizing and trading assets. To make this technology available to the public, you can use custom blockchain solutions. The reason for the growth of tokenization platforms lies in companies that need to improve customer experience and maintain fraud prevention.
What is Asset Tokening in Custom Blockchain Solutions?
Asset tokening is the new way of representing ownership rights. The system allows the users to buy real-world assets using digital tokens on blockchain technology. It is like the traditional process but with a bit of a modern twist. Tokenization helps because it substitutes sensitive data, such as a bank account number, with a non-sensitive element, which is a randomized data string that cannot be exploited.
Where Can You Buy or Sell Asset Tokens?
People who are interested in using technology to manage their holdings can do so through asset tokenization platforms. Some common examples of such platforms include Polymath, securitize, tZERO, ADDX, and others.
These platforms can help create and manage the tokens based on the regulatory compliance in place.
While there are a few options available in the market for tokenization, it is still a growing market that is expected to reach 5.6 billion valuations by 2026, as per a report by MarketandMarkets. Therefore, several companies are now jumping into creating such platforms for their users.
What are the Advantages of Tokenization Platform Development?
When it comes to asset tokenization platforms, they are gaining traction among users for the following reasons:
- These platforms unlock improved liquidity by facilitating fractional ownership.
- They allow investors to dwell in previously inaccessible markets.
- Custom blockchain solutions used to create the platforms make them extra secure.
- Removal of intermediaries and other associated fees reduces the cost.
- Embedded smart contract solutions in blockchain allow for automated compliance processes.
- The platforms encourage market expansion.
How to Create Asset Tokenization Platform in 2024?
Businesses that are now considering the use of asset tokenization in their services or operations need a guide on how to make the best platform, and this post aims to cover it all.
To begin with, setting up a clear goal is essential, especially in the landscape of tokenizable assets. Depending on the product you want to tokenize, the challenges associated would be unique due to the demography associated with the asset. To create the perfect asset tokenization platform, these are the questions that you must answer with clarity.
Question 1: What is the purpose of this asset tokenization platform?
Here, invests time in defining goals, the target market, and asset classes that you would like to tokenize. Additionally, take the time to think through the various functionalities and features that this platform must have for maximum user satisfaction. You do not need to make the final decisions here, but initial clarity of the minimum viable product can take you a long way further than no plan at all.
Question 2: Whose assistance do you need to make this platform?
You will need experts to assist you in your journey of creating the platform. In this case scenario, it would be best to choose a company that offers custom blockchain solutions, including smart contract development, regulatory compliance, and expertise in the subject. Generally, you can find a range of several crypto wallet development companies that have worked on blockchain. However, if your budget allows, look for a company that has a proven track record in creating asset tokenization platforms.
Also, consider what will benefit you – an in-house team of experts or outsourcing the work to an experienced blockchain development company.
Question 3: What legal requirements must you fulfill depending on the assets you want to tokenize?
The legal and regulatory framework is an essential part of asset tokenization platforms. You already work in the field or have experience with it, so take note of every legal and compliance obligation that you need to fulfill.
Question 4: What blockchain technology should you use for the project?
One of the trickier questions that you would need to answer is what blockchain technology you should use for a project. The answer will change depending on your personal preference and the niche you are working on. Therefore, you would need to collaborate with the custom blockchain solutions providers to find the most viable answer here. The factors that you must consider while making this decision include scalability, security, community support, and interoperability.
Question 5: What user interface and experience design do you want for the platform?
All online portals, including asset tokenization platforms, must come with a user-friendly interface that is intuitive and engaging. Take the page from the already successful ventures and create a platform that is unique but still offers ease of use.
Question 6: What are the measures in place to make the platform secure?
Custom blockchain solutions pride themselves on being extremely secure. However, it requires deliberation from the creators to make sure that you maintain the promise. Therefore, discuss how you are enabling user data, assets, and transactional information protection. The use of tools like encryptions, multi-factor authentication, and security edits is essential to ensure a safe product for your users.
Very few companies are lucky enough to walk Scott-free from a data breach, as losing credibility in your users’ eyes is akin to corporation suicide. Therefore, it is essential for you to do everything you can to avoid the PR nightmare.
Question 7: What solutions would you need for post-launch?
Completing the product and launching it is not enough. You need to consider how you will manage the post-launch asset tokenization platform. Firstly, you would need to discuss the details of maintenance and support with the platform developers. You can always choose another one if such a situation arises. Additionally, as rules and regulations related to real-world assets change per the country’s laws, it is essential to keep your platform updated with them.
Additionally, ask the custom blockchain solutions provider about their testing and quality assurance. Comprehensive testing goes a long way in creating reliable products.
What Should You Consider While Choosing the Tokenization Platform Development Company?
When choosing the right organization for the job, here are a few things to consider:
- The company’s overall expertise and experience in similar projects.
- They should have a good understanding of regulatory frameworks.
- Ask about their development process, ensuring that they use methodologies that accelerate development while ensuring appropriate quality.
- The overall technical expertise of every team member working on the project.
- Post-launch support is offered once the product is out to the public.
Utilize Custom Blockchain Solutions to Create Reliable Asset Tokenization Platform
With the right assistance, it is possible to create a platform that can revolutionize access to traditionally illiquid assets. Allow your users to experience fractional ownership, enhanced liquidity, and broader investment accessibility. Additionally, it builds trust and credibility among investors by ensuring transparency, regulatory compliance, and secure transactions using the new tools.
Asset tokening through a tokenization platform is the new and improved way of holding assets. The new technology allows businesses to reach new markets, get more investors, and ensure easy liquidity.
To get the final products that truly transform your business, get in touch with the right custom blockchain solutions provider today.