How Blockchain Technology Unlocks Liquidity for Real-World Assets

Blockchain stands astatine the forefront of disruptive technologies. Its transparency, security, and cost-efficiency person benefited galore industries similar proviso concatenation and payments successful taking the adjacent quantum leap.

However, determination has been minimal traction successful the $360 Trillions1 Real-World Assets (RWA) marketplace including intelligence property, commodities, and different assets.

The marketplaces for these assets are fragmented and afloat of frictions resulting successful the deficiency of liquidity and interests from some plus owners and investors.

Seeing the size of marketplace opportunity, blockchain platforms emerged with promising solutions involving plus tokenization. By leveraging astute contracts and blockchain technology, RWA tin beryllium turned into integer tokens resulting successful greater entree to vulnerability and liquidity.

1Real World Asset worth is estimated to beryllium $256T successful 2018 and applying 5% yearly maturation until 2025 (Futurism nonfiction based connected Credit Suisse figures)

Bringing Real-World Assets to Life

Let’s prime an illustration of commodities. Every barroom of gold, tube of oil, and inch of existent property person a combined worth of $510+ trillion arsenic of 2021 according to a caller McKinsey Global Institute Report. However, lone a fraction of those assets are considered liquid.

For RWA to person liquidity, the ownership involvement has to beryllium distributed, akin to however companies rise monolithic amounts of wealth erstwhile they contented an IPO. With blockchain, the assets go represented arsenic tokens (asset-backed tokens) that tin beryllium easy traded successful an unfastened market. Investors tin debar accepted brokers and transact astatine little costs.

Blockchain besides ensures transparency and provability of tokens connected the distributed ledger, which helps a large woody successful terms find and marketplace making. Even connected the regulatory front, companies won’t person to look immoderate scrutiny erstwhile issuing tokens backed by RWA, beryllium it tangible oregon intangible.

As a result, the barriers of introduction and the “liquidity premium” are importantly lowered. Looks similar win-win solutions for some sides of the equation right?

Unlocking Real-World Assets Financing

Converting illiquid to liquid assets is lone 1 portion of the equation. For an endeavor to efficiently usage its assets to summation moving capital, they besides person to get valuations right. This is adjacent much indispensable erstwhile idiosyncratic decides to usage intelligence spot similar trademarks and patents arsenic collateral.

But the occupation with valuing RWA is determination isn’t capable information oregon fiscal history. It involves taking galore assumptions regarding aboriginal currency flows and growth. So determination is simply a request for an close worth estimator to capable the gaps successful RWA financing. While the markets are waking up to prehend this opportunity, precise fewer fiscal institutions person figured it out.

On the different hand, heavy exertion and bundle platforms similar Ovenue are integrating blockchain combined with artificial quality (AI) and instrumentality learning (ML) technologies to make innovative solutions. From providing valuation and ineligible model to plus tokenization and marketplace, Ovenue has built a cleanable acceptable of fiscal products to extract maximum worth for RWAs. Ovenue’s exemplary is casual to understand; value, tokenize and monetize.

Currently, it takes weeks and adjacent months and aggregate stakeholders to monetize the bulk of RWA resulting successful added complexity, costs arsenic good arsenic tons of bias and errors.

With Ovenue, these processes present travel a frictionless acquisition done state-of-the-art technology. Asset valuation and tokenization present takes minutes!!

With implicit $80M successful RWA nether management, Ovenue is establishing avenues for plus owners to rise superior and investors to diversify their portfolios.

Further, Ovenue leverages precocious technologies to instrumentality industry-standard methods similar Relief from Royalty to afloat unlock the imaginable of RWA. Currently, the divers plus excavation connected Ovenue features manner brands, inventory for e-commerce platforms, aesculapian & cleantech patents, copyright and franchising agreements and premier existent estate.

The asset-backed tokens, a signifier of non-fungible tokens (NFTs) issued to the Asset Owners tin past correspond assorted utilities and opportunities that are genuinely determined by the Asset Owner.

For example, the plus proprietor tin get non-dilutive backing by utilizing the asset-backed tokens (in NFT format) arsenic collateral.

As Ovenue uses astute contracts, the presumption and conditions of the woody tin beryllium customized utilizing assorted fiscal instruments. Possibilities are endless.

Tokens issued by Ovenue are asset-backed tokens, not securities. They are a benignant of NFTs, a unsocial integer identifier that cannot beryllium copied, substituted, oregon subdivided, that is recorded successful a blockchain, and that is utilized to certify authenticity and ownership.

Ushering New Class of Alternative Investments

Ovenue tin offset the deterioration of a company’s equilibrium expanse by tokenizing RWA and leveraging technology. It helps make backstage markets for homogeneous plus pools and provides close valuations. As a result, assets that were simply sitting idle volition beryllium capable to service arsenic a maturation vehicle. Many businesses person undisclosed and undervalued assets. Ovenue unlocks and monetize the worth of your RWA.

In addition, plus tokenization of RWAs besides creates alternate investments successful the fiscal markets. Investors tin yet pat into a wide-range of high-growth plus classes and genuinely diversify their portfolios. With much consciousness and organization participation, specified blockchain solutions tin genuinely revolutionize concern and marque the manufacture accessible to all.