Asset tokenization has long been considered one of the most compelling applications of blockchain technology. In June 2019, US investment banking giant BNY Mellon stated that it has the potential to “drastically change the dynamic” for investors and unlock opportunities previously out of reach.
Real estate is an unavoidable place to start. Property tokenization can open the door to fractional ownership, allowing people to buy a small piece of a building. The volatility of global markets has shown why diversification is crucial, but until now, the sheer cost of real estate has made it inaccessible for many.
The benefits may not stop here either. It can take up to six months to close on a home purchase, all thanks to a process that is time-consuming, harrowing, and surprisingly paper-based. Tokenization has the potential to speed things up, while also offering a greater degree of trust and transparency. Improved liquidity could ultimately revitalize the market, making transactions frictionless.
There are ramifications in the business world, too. Franchising has proven to be an exceptionally popular way to expand a brand: McDonald’s, Subway, and Chick-fil-A are just a few of the fast-food giants that allow entrepreneurs to open their own stores. Here’s the rub, though: there are huge expenses involved with this type of investment. According to human resources company ADP, start-up costs can run as high as $5 million, a sum few people could come up with on their own. Fractional ownership achieved through tokenization can remove barriers to entry, providing tangible benefits for each participant in such an ecosystem.
Elsewhere, tokenization could offer a modern twist on crowdfunding, which has allowed cutting-edge products to hit the market with the support of everyday consumers. Adopting blockchain can allow entrepreneurs to reach a broader cross-section of investors, while also offering higher levels of liquidity. This could also transform the way expensive infrastructure projects get off the ground, especially in the renewable energy sector. This could not only unlock new funds in the race to reduce carbon emissions, but it could also lower household bills.
On the star-studded streets of Hollywood, tokenization is already making its presence felt. From motion picture productions to music rights, passionate fans can now financially participate in the creations that matter most to them. This can also free content creators from the confines of record labels and movie studios, allowing them to take risks and take control of their destiny. Better yet, it also means that anyone can become a celebrity. One compelling use case in this arena relates to Stoner Cats, an NFT-backed animated series that Mila Kunis released in 2021. It sold out in just 35 minutes.
Make tokenization usable
One could argue that this is just the tip of the iceberg when it comes to potential use cases for tokenization, but there are challenges that get in the way. One of them is regulation, and fractured frameworks in jurisdictions around the world mean there is a lack of cohesion for entrepreneurs who want to embrace this technology.
It’s also a very new space, with limited historical data and ties to a volatile market. That’s where platforms like Brickken come into play. Like Shopify, which enables custom eCommerce stores, Brickken allows tokenizing companies to create their own custom token store, further improving the demystification of tokenization. The goal of this project is to help digital assets be created, sold, and managed in a transparent way. By offering a series of easy-to-use tools and features presented in an all-in-one platform, Brickken enables companies to easily embrace tokenization and infuse their business model with a 21st century twist.
One of the most significant use cases for the Brickken platform is real estate tokenization. By leveraging blockchain technology, Brickken facilitates fractional ownership of real estate, making real estate investing more accessible and inclusive. Through tokenization, investors can acquire fractional ownership tokens that represent a portion of the property’s value. This approach opens up new avenues for liquidity, lowers barriers to entry, and enables a more efficient and transparent real estate market.
Beyond real estate tokenization, Brickken offers companies the ability to tokenize their equity or debt instruments, revolutionizing the way capital is raised. Through the platform, companies can create digital tokens that represent equity or debt instruments, allowing investors to participate in the growth and success of the business. This approach opens up new opportunities for both startups and established companies, providing greater access to capital and fostering a more inclusive investment ecosystem.
Additionally, Brickken is addressing the challenge of limited capital in renewable energy investments by tokenizing projects, promoting fractional ownership, and affordability. Investors can now buy fractional shares, overcoming financial barriers and supporting sustainable initiatives.
Simplifying life through tokenization
Billed as a no-code solution that is white-label in nature, Brickken says it offers a global ecosystem of partners to ensure each customer is supported every step of their journey, holding hands as assets are partitioned.
A key component of this ecosystem is the platform’s native BKN token, which gives users access to a variety of services and benefits. Token holders can participate in tokenized investments, gaining exposure to real estate, art, intellectual property, and other exciting asset classes. Additionally, BKN tokens grant users exclusive access to premium features, discounts, and rewards within the Brickken marketplace. Owners can also participate in governance decisions and shape the future direction of the platform.
Brickken’s key point is this: while tokenization may not yet be mainstream, there are already compelling examples where tokenization adds real value to people’s lives.
Ludovico Rossi, Brickken’s chief revenue officer, said:
“Fractional ownership is the transformative progression of the sharing economy, and asset tokenization is its powerful enabler. This paradigm shift will shape our future, overcoming the impact of the sharing economy as we enter an era where fractional ownership becomes the norm. Get ready, the wave is imminent.
To facilitate the adoption of tokenized assets, Brickken is launching its Token Issuer Academy, which provides comprehensive guidance, tutorials, and tools for successful enterprise tokenization for individuals and businesses. By joining the Academy, participants will gain essential knowledge on how to create, distribute and manage tokens using the Brickken Token Suite, enabling them to harness the potential of blockchain technology and decentralized finance.
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