Foxxi66
Tokenization
In times of crisis, many companies find themselves at the limit of their financial capabilities because of an unforeseen decrease in turnover and profits. This prevents them from implementing previously planned projects or expanding their operations. Alternatively, it is possible to finance expensive projects by issuing tokens.
Also, tokenization allows the company to expand its capabilities and make its existence more secure.
what is tokenization in relation to pci compliance https://www.verygoodsecurity.com/blog/posts/tokenization-and-pci-compliance-everything-you-need-to-know
In layperson's terms, tokenization is a tool that reflects the value of assets in digital units based on blockchain technology.
As a result, each digital team represents a fraction of the underlying asset. These digital units are called tokens (security tokens). The term "assets" should be understood very broadly: real estate, raw materials, artwork, equipment, a share in a partnership, or even entire projects. Regardless of the type of asset to be split into tokens, you have greater discretion regarding the structure of the contract. The innovation, however, is not the contract underlying the token but the ease of transferring the rights encapsulated in it. Just as the Internet suddenly made it possible to send documents digitally, tokenization now allows you to transfer assets to other people with the click of a mouse.
Tokenization allows assets to be broken down into units of any denomination, and thus minimum investment amounts can be determined at will.
Tokens can be issued to the general public in a public offering, for example, or to a limited group in a private placement of capital.
Tokenization plays an important role not only in the real estate sector. For example, it can be used to create a savings fund for a company in any industry.
If token holders want to exit the investment, they can simply transfer their tokens to another holder or a third party using blockchain technology. Such a transfer can take place, for example, through a platform or directly between buyer and seller, without the need for intermediaries.
Consequently, exiting such investments can be very easy. In addition to the ease of transfer and the ability to choose the denomination, another important advantage of tokenization is the ability to reflect the "collected" capital on the balance sheet. Depending on the legal structure, this capital may appear on the balance sheet as equity. Accordingly, credit financing can be done at a bank to achieve a leverage effect after financing a company through tokenization.
by Foxxi66 on 2022-11-24 04:43:21