More players are joining tokenization

Tokenization is booming and more and more important players are joining this trend. What are the key points and relevant aspects of this phenomenon that is transforming the financial world.

The tokenization of Real World Assets (RWA) is an innovative process that converts physical assets, such as real estate, into unique digital tokens, allowing them to be fractionated and traded in decentralized financial markets. Big names such as Mastercard, J.P Morgan and Visa are embracing this technology, demonstrating a growing interest in its capabilities to improve the efficiency, security and liquidity of markets.

Why do you attract attention to such important multinational companies?

One of the main reasons is that in the face of revolutionary changes such as tokenization, those who do not implement it will be left behind in this race, which is why it is so important to be up to date with the innovations that will come. Another reason is because of the concepts it brings by itself, changing the paradigm and foundations it had established in the traditional financial world.

Eliminating middlemen and automating processes can significantly reduce operational and transaction costs, optimizing efficiency in processes where they used to last days or weeks can now last minutes. Tokenization opens up the possibility of converting any asset in our real life into a financial product, extends the operating framework to 24/7, allows us to reach a new audience and offers a form of financing for companies, among other advantages. These multiple factors are the cause of the growing interest and adoption of this technology.

Recently, the largest asset manager, BlackRock, took the next step by filing a series of documents with the SEC, to mark the launch of the first tokenized asset fund.

The action of this giant aroused the interest of other important players such as Mastercard, which is developing a regulated settlement network in collaboration with J.P Morgan, Visa, Citi, Brodridge, MITRE Corporation and BNY Mellon. This initiative promises to revolutionize the payment process through the use of shared accounting technology.

Another case is the European Investment Bank, which issued tokenized bonds using platforms provided by banks such as HSBC and Goldman Sachs. All of these are real use cases where the revolution is already happening, it's here and now.

Wall Street recognizes the importance of tokenization, the trading of financial instruments on a blockchain shared by investment banks and their clients. This innovation could free up trillions of idle capital that “is simply there, unused”. This is due to the enormous amount of guarantees offered to satisfy regulators, according to the Report of the Global Financial Markets Association This May 2023, it was found that there are currently up to 19 trillion dollars in unpaid guarantees in the short-term loans that investment banks grant to each other. Basically, this is a giant that is sleeping, and inactive funds could be exploited with technology, allowing users to complete loan transactions in minutes using smart contracts to tokenize cash and guarantees.

Benefits of RWA tokenization

As we have seen in previous articles, tokenization breaks with the established, giving infinite possibilities for demand such as supply. In short, the key points are:

• Fractionation of assets: As indicated in our article “What is RWA asset tokenization” Tokenization allows large assets, such as real estate, to be divided into smaller parts, facilitating investment and diversification.
  
  
• Increased accessibility: RWA Tokenization Boosts Liquidity, investors can participate in previously inaccessible markets, such as real estate, with smaller investments and improved liquidity.
  
  
• Transparency and traceability: Blockchain technology provides a transparent and secure record of all transactions, increasing trust and reducing risks associated with investing in tangible assets.

Reental, a pioneer in tokenized real estate investment

Reental is a reference and pioneer in the application of technology of Tokenization in the real estate sector. We offer a platform that allows investors from anywhere in the world to participate in investing in tokenized properties, with monthly benefits and guaranteed liquidity.

With barely 3 years in the market we have already achieved great milestones and we have closed agreements with highly prestigious entities, some concrete examples are

1. Property in Madrid: A tokenized property that projects a return of close to 8% for investors thanks to the agreement with Unique of the Civitas group.
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2. Punta Cana: Investors have been able to participate in a large project in the Dominican Republic through an agreement with Cler-HP, a company with a history and reputation that is listed on BMEgrowth.
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3. Urbanization project: Due to the expansion of Reental worldwide, a partnership was agreed with the company MdosCapital, our Mexican partner, where we have already launched many projects, demonstrating the high demand and liquidity of the market.

The tokenization of Real World Assets is an innovative technology that is democratizing access to investments traditionally reserved for large institutional investors. The benefits in terms of accessibility, liquidity and transparency are driving its adoption by important players in the financial world, and it is expected to continue to gain ground in the coming years.

In this context, Reental emerges as a reference and pioneer in the application of this technology, offering investors from anywhere in the world the opportunity to participate in the tokenization of real estate assets and obtain monthly benefits with a minimum investment.