The rise of tokenization: What’s fuelling this powerful trend?

By now, you probably know that the tokenization of real-world assets is becoming one of the key trends in 2024. RWA has become a buzzword as people begin to realize that the tokenization of real estate and other assets is revolutionizing investing.

Let’s examine why RWA is taking off and where it might be headed in 2024.

Why has tokenization become so popular?

The market capitalization of institutional tokenized real-world assets grew from zero in January 2023 to over $300 million by September. And it’s not slowing down. The market is expected to expand to $10 trillion by 2030. So, why the explosive growth?

Tokenization brings an array of benefits that have contributed to its popularity.

Tokenized (Yield) Economic Rights

Tokenization allows for shared economic rights to real-world assets. Look at NFTs. People want to have a share of a particular piece of art. NFTs make that possible with tokenization. The Merge, for example, is the most expensive NFT ever sold at a whopping $91.8 million. But it wasn’t bought by one person. “The Merge” was split into 312,686 coins distributed to 29,983 buyers.

These numbers might sound crazy, but the idea of tokenization is becoming the norm. And it’s not just pixelated monkey jpegs. Tokenized real-estate investing is becoming a reality.

Transparency

Tokenization brings clarity to asset ownership and transactions. Every transaction and ownership record can be seen and verified on-chain. This means that all stakeholders have access to accurate, real-time information relating to their assets.

This level of transparency provides peace-of-mind for investors, and it’s something we don’t see in traditional investing. The result is a more straightforward investment process with simplified due diligence and fewer disputes.

Efficiency

Tokenization streamlines the trading process. They say “crypto never sleeps”. Well, tokenized assets can be traded around the clock, too. This 24/7 trading provides liquidity and flexibility that traditional markets don’t offer.

Eliminating the intermediaries typically involved in transactions also leads to reduced settlement times. This accelerates transactions and reduces costs. Good news for both buyers and sellers. Win-win.

Transferring rights

Tokenization makes it much easier to transfer rights. It works just like NFTs. The asset’s history is recorded securely and clearly on-chain, so there’s no doubt about who has the rights to it. This makes transferring rights smoother and can also make the asset more attractive and valuable because its history is clear and transparent.

Democratized investing

Tokenization gives access to investment opportunities previously reserved for institutions and high-net-worth individuals (HNWI). For small investors, premium opportunities are hard to come by. Tokenization lets the individual investor get in on the action. That’s where YieldBricks enters the picture.

YieldBricks: Making RWA accessible

YieldBricks is leveraging the benefits that tokenization brings so we can shape the direction of RWA space. We’re on a mission to make premium real estate investments accessible to retail investors. Our goal is to enable YOU to participate in high-yield opportunities with a low entry point of just $50.

YieldBricks offers access to carefully selected, internally-owned properties, so investors can start earning returns from day one. Our no-lockup model means you can enjoy the flexibility of entering and exiting investments at your discretion without the liquidity constraints of traditional real estate investing.

For investors looking to diversify their portfolios with real-world assets, YieldBricks offers a gateway to premium opportunities.

Learn more about YieldBricks here. Join the community channels on Twitter, Discord, and Telegram to take advantage of RWA while it’s still early.