Tokenized Securities
| Tokenized securities are digital assets that represent ownership of an underlying asset, such as a stock, bond, or real estate. The ownership rights of these assets have been converted into tokens, which can be stored on a blockchain or other digital ledger. This allows for more efficient and secure trading of these assets, as well as greater transparency and immutability. Tokenized securities have many advantages over traditional securities. For one, they can be traded 24/7, 365 days a year. They also offer greater liquidity, as they can be easily bought and sold on digital exchanges. Moreover, tokenized securities are more transparent than traditional securities, as all transactions are recorded on a public blockchain. This allows for greater price discovery and efficiency in the market. Finally, tokenized securities are more secure than traditional securities, as they are stored on a decentralized blockchain that is resistant to hacking and fraud. The benefits of tokenized securities have led to a growing number of companies and organizations tokenizing their assets. In 2018, the World Bank issued the world’s first blockchain-based bond, worth $73 million. This was followed by the launch of the first tokenized real estate investment trust (REIT) in the United States. These developments are just the beginning, as the tokenization of securities is expected to increase in the coming years. |
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