Introduction
From real estate property to paintings to precious metals to company stocks, everything physical can be converted into NFTs. Numerous luxurious brands are already tokenizing their real-world assets into NFTs. However, many people are still confused and don’t get — why they should tokenize their real-world assets.
Don’t you worry! We’re here to help you discover the benefits of tokenizing real-world assets.
Why bring real-world assets to life?
The term ‘real-world asset’ was first used to differentiate cryptocurrencies from traditional financial holdings. But who knew that blockchain would unlock the possibility of bridging real-world assets to Web3? An economy of trillions of dollars out of which real estate alone holds approximately $362 trillion and gold has $11 trillion worth of market capitalization.
By tokenizing these real-world assets, you can trade their value, transfer ownership, use these asset NFTs to extract yield, or use them as collateral to borrow loans/funds — which wasn’t previously available in the traditional market or real world. Nevertheless, certain other drawbacks of the traditional market like limited accessibility, regulatory hurdles or restrictions, lack of the global market, and more inevitably contribute to making real-world assets illiquid in nature.
But this will not be the case anymore, because Web3 is ruling out all these possibilities! Web3 has brought many opportunities for all entrepreneurs, brands, artists, and more to tokenize their assets and induce massive liquidity within them. Now, you must be wondering — how Web3 can unlock the latent liquidity of real-world assets. Then let us have you in our secret.
The benefits of bringing real-world assets onto Web3
- Higher Accessibility: Many luxurious assets like vintage cars, palaces, rare diamonds, and more which were previously only accessible to the elite cliques or wealthiest investors — are now within the common investors’ reach due to DeFi — where small investors can also access as well as invest in the riskier, but higher-upside assets with relatively low capital. For instance, with DeFi in space, small-to-general investors will be able to invest in assets like rare diamonds, royal jewels, & more (similar to crowdfunding), and can reap the financial rewards from their investments. Henceforth, this will not only enhance the accessibility of the asset but also open up investment opportunities for numerous investors.
- Increased Liquidity: By tokenizing real-world assets, you will not only be able to enhance the accessibility of your assets but also be able to ensure their authenticity. Blockchain is one such technology that eliminates the probability of fraud and centralized control or middlemen which makes the asset transaction process smoother and streamlined. Moreover, the added advantage of selling NFTs in a secondary market is alluring various investors to get their hands on the exclusive real-world backed NFTs. Recently, an NFT of a real-world house was sold at a whopping price of $175,000 in Columbia, South Caroline.
- Global Exposure: One of the most significant benefits of bringing real-world assets on-chain is that it gets tremendous global exposure. Let’s understand this with more clarity. Recently, some of the most famous brands have taken a leap into Web3 by bringing a unique physical & digital merch NFT Collection that anyone despite geographical boundaries can access or trade it freely. Not only that but some famous celebs are also using Web3 as a medium to expose their historical Heirlooms, and Jewels to the global audience.
- Enhanced Transparency and Immutability: A key benefit of tokenization is that it allows for the open tracking and auditing of all these records — because all the assets are stored in the blockchain. As A Result, buyers or investors do not have to suffer due to a lack of reliable and easily-available information regarding returns, ownership history, sale history, and others — which inevitably enhances the potential of assets, reduces fraud risks, and encourages everyone to invest in them without worrying.
Nevertheless, many famous brands are already embracing this new trend by bringing their real-world-backed NFTs on-chain and gaining global exposure. Even many industry experts predicted that this new real-world backed NFT trend has the potential to spur NFT Space into more mainstream. So don’t think twice before bringing the wide range of your real-world assets on-chain as NFTs.
Aconomy is a DeFi platform that aims to tokenize real-world assets with its cutting-edge technology. It benefits both investors and asset owners by empowering them to trade assets on a decentralized exchange, which provides increased accessibility and liquidity.
We at Aconomy are always on the lookout to connect with like-minded individuals, strategic collaborators, and partners who wish to be part of our journey. To get in touch, please feel free to reach out to us on
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