How Does Tokenization of Existing Assets Create New Revenue Streams?
Tokenization allows a company to fractionalize ownership or access to illiquid assets, such as real estate, intellectual property, or even future revenue. This fractionalization lowers the barrier to entry for investors, expanding the potential capital pool.
Each token represents a verifiable share, which can be traded 24/7 on secondary markets. This process unlocks liquidity from previously dormant assets, creating a new, ongoing revenue stream from transaction fees or token sales.
Glossar
Tokenization
Abstraction ⎊ Tokenization, within cryptocurrency, options trading, and financial derivatives, represents the process of converting rights to an asset into a digital token on a blockchain or distributed ledger.
Tokenization of Existing Assets
Asset ⎊ This describes the technical and legal procedure of mapping the rights and obligations associated with a tangible or intangible real-world asset onto a digital token on a distributed ledger.
Revenue
Yield ⎊ Revenue within cryptocurrency, options trading, and financial derivatives represents the economic gain derived from deployed capital, factoring in both explicit payouts and implicit benefits like optionality value.
Revenue Stream
Composition ⎊ The Revenue Stream for a cryptocurrency mining operation is composed of two primary elements: the newly minted block reward, representing the protocol's subsidy, and the accumulated transaction fees from the confirmed block.