The Asset Tokenization Lifecycle Process (ATLP) is an Information Governance (IG) model that formally defines the process by which a real world asset is designated by a new digital, cryptographic token on a blockchain network.
Information Governance is a holistic approach to managing corporate information by implementing processes, roles, controls and metrics that treat information as a valuable business asset.
The goal of a holistic approach to the Asset Tokenization Lifecycle Process is to make information assets available to those who need it, while streamlining management, reducing administrative costs and ensuring compliance.
This, in turn, enables the organization to reduce the legal risks associated with unmanaged or inconsistently managed information and be more agile in response to a changing marketplace.
An important goal of Asset Tokenization Lifecycle Process is to provide people with the complete body of data they can trust and easily access.
Often, the need for a holistic approach to managing information does not become evident until a major event occurs, such as a lawsuit, compliance audit or corporate merger.
The Asset Tokenization Lifecycle Process provides a wide range of benefits. It ensures the following:
- whoever requires access to certain information can receive it;
- underlying data is properly managed, stored and secured;
- regulatory requirements are correctly observed, where necessary; and
- risk management is in place to minimize any issues that might arise.
The ATLP is broken into seven discreet steps, which includes the entire lifecycle of an asset as it moves through the process of origination and offering, to secondary market trading and transfer, through all layers of management and administration, and finally disposition when the asset might be no longer in existence.
Each of the seven steps is described further: