Tokenization is one of the many sectors that blockchain technology has already transformed, and it has also changed our understanding of and approach to utilizing tokens. It has emerged as one of the most promising mediums for exchange online, owing to its ability to represent actual assets in the form of virtual assets.
With the introduction of blockchain technology, tokenization apps that have previously aided in protecting users' personal financial information and the security of their payments have acquired an altogether new use case. The word "tokenization" in the context of blockchain refers to the highly secure process of converting ownership rights of property or financial assets to digital assets.
It is critical to understand that blockchain networks provide the encryption and traceability of each transaction inside a block of information. As a result, tokenization based on blockchain technology offers an open, risk-free, and forward-thinking solution for evaluating and managing any asset with value.
Because of blockchain technology, it is possible to tokenize a broad range of real-world assets and businesses safely and efficiently. Surprisingly, the techniques' reasoning provides a compelling argument for tokenization, which has various unique advantages and use cases across multiple sectors.
Decentralization is a built-in benefit of blockchain technology. Some problems from too much centralization include manipulation, red tape (excessively complex procedures), and unfair distribution of benefits. Any process might benefit from decentralization's capacity to optimize it, putting the whole chain of intermediaries on an equal footing.
Tokenized assets may represent whole or partial ownership rights in other assets like real estate, precious metals, and more. Moreover, the tokens themselves may embody these ownership rights wholly or partly. Users may subdivide every investment, property, or thing into various tokens, each with its unique number. As a result, individual investors with smaller amounts of cash may be able to study the investing market and become aware of various profitable choices without having to join investment funds.
Tokenization can reduce the final barrier to entry into investment markets by simplifying investor registration procedures. This is maybe the most crucial advantage of tokenization. As a result, even in the absence of a stock exchange, tokenization may give considerable prospects for creating a securities market. Tokens may make enrolling for an account and registering ownership easier, as well as simplifying other elements of transactional operations.
Casual investors often see cryptocurrency and decentralized finance as inaccessible and solely tailored to finance professionals and tech savants. That gap between potential investors and digital assets makes pushing forward other blockchain applications, including the tokenization of physical assets, more difficult. Helping novice investors and crypto veterans diversify their digital asset portfolios amid a bear market requires making the process as easy as possible.
VNX, the first European regulated platform for investment into tokenized precious metals, now accepts major credit cards Visa and Mastercard as payment options on its native platform. The addition of the two largest credit payment methods unlocks the gates for accredited investors to utilize VNX’s tokenized gold platform without the requirement of using crypto payments or wire transfers.
By adding Visa and Mastercard to its native platform, VNX expands its fiat payment capabilities beyond bank transfers and deposits in Bitcoin (BTC) and Ethereum (ETH). By enabling credit card payment options directly on the platform, investors can easily access and purchase VNX Gold, and future tokenized precious metals. In addition, while fiat bank transfers have always been available on the platform, credit payments are instantaneous and less invasive than the complicated and highly detailed information required for bank transfers.
“Adding Visa and Mastercard as payment gateways on our native platform is an important step for us,” says Alexander Tkachenko, CEO and Co-Founder of VNX.
“As more people explore tokenized precious metals, onboarding the two largest fiat credit cards to our platform helps foster greater accessibility and convenience for both experienced and novice investors.”
Tokenization seems to be here to stay for the foreseeable future. This is because the technology brings additional trading possibilities for real-world assets across various industries.