Tokenization: Where Crypto Meets Fiat?
With the continuing crypto and blockchain awareness, investors are beginning to appreciate the potential of the technology. With the entry of tokenization, it is now possible to convert assets, fiat and property into digital assets. Developers are now building Apps that use the blockchain immutability to convert property, cash and assets into digital assets.
With tokenization, new ownership models are emerging and this is making it seamless to sale or trade assets on DLTs. Real estate tokenization for instance allows investors buy a fraction of properties and earn in rent. This is a very easy way to expand their crypto portfolios.
Shifting Focus through Tokenization
Funder One Capital is a new entrant in the real estate tokenization. The blockchain network seeks to tokenize assets thus converting them to tradable securities. Ownership of real estate properties had been restricted to the holders of fiat currencies but the token economy makes it possible to own fractions of the assets.
The real estate tokenization platform enables investors buy shares from different properties this getting shares in the sector. This means the buyers minimize on the risks and get profits at the same time. Tokenization protects investors from fraud which has been thriving in the traditional real estate.
Reducing Scams in Real Estate
Tokenization is set to eliminate scams which have become common in real estate. There are many unresolved cases of double ownership. However, with tokenization, that is a thing of the past. Records cannot be manipulated and tokens do not allow for double spending.
Tokenization offers investors real freedom where they can choose which properties to invest in. What’s more; you do not have to worry about the total assets value; you only need to own a fraction of it. All the shares you purchase are represented by digital tokens and you can use them as securities.
Turning Fiat into Digital Assets
There is another emerging marketplace where it is now possible to tokenize fiat into digital assets like ETH, BTC or LTC. There are many platforms that allow investors to purchase digital assets with fiat. The beauty of this new market is that it eliminates the middleman.
CEX.io and CoinMama are some of the most popular exchanges that offer the best crypto to fiat exit gateway and vice versa. When you buy tokens with cash in a tokenized economy, you turn your fiat into a digital asset which you can purchaser real estate shares.
Crypto Complementing Fiat
For the real estate or any other sector to be folly tokenized, crypto and fiat should complement each other. With the digital money volatility, there are times when the investor would like to exit one economy to the other when prices are not favorable.
The consumer is only looking for tokenization systems that are easy to use and they can use either crypto or fiat to make transactions. Outfits that act as the bridge between the two economies appear to gain popularity since they allow both crypto and fiat investors to onboard easily.