DeFi Asset tokenisation

One of the ways that blockchain technology is likely to be adopted for the mass markets is by converting assets into tokens that can then be exchanged on regulated digital exchanges in various jurisdictions around the world. Not only does blockchain technology guarantee private possession, but it also promotes the democratisation and inclusion of formerly illiquid assets, so leading to more equitable markets. Tokenisation via a distributed ledger technology means it is possible for any asset, whether an original painting, digital media platform, piece of real estate, corporate share/debt instrument or collectible, to be tokenised. To clarify, asset tokenisation occurs when an issuer produces tokens representing an asset (either digitally or physically) and once you have bought tokens for an item on the blockchain, your asset ownership is permanent.

Asset tokenisation process

Source: 3commas.io

Tokenised asset categories

·      fungible assets: fungible assets are interchangeable, meaning …