What is Asset Tokenization?

Smart business leaders are recognizing the power of tokenizing securities offerings to access multiple liquidity pools, better data about their asset, and many other inherent benefits.

Asset tokenization involves converting ownership rights to real-world assets into digital tokens on a blockchain or distributed ledger. Each token represents a unit of ownership in the underlying asset, allowing for fractional ownership interest, broader distribution, and increased liquidity. This process offers benefits such as increased accessibility to traditionally illiquid assets, enhanced transparency, and potential cost savings by reducing intermediaries.

With a 50x increase predicted between 2022 and 2030, from $310 billion to $16.1 trillion, tokenized assets are expected to make up 10% of global GDP by the end of the decade.

What Can Be Tokenized?

Financial Securities

Equity, Bonds, Options, Derivatives, Hybrid Financial Assets

Intellectual Property

Patents, Copyrights, Trademarks, Trade Secrets

Physical Property

Fleet, Equipment, Luxury Goods (Cars, Designer Apparel, Accessories)

Real Estate

Residential, Commercial, Industrial Property, as well as raw land


Energy, Precious Metals and Stones, Agricultural Products

Art & Collectibles

Antiques, Coins, Stamps, Books, Firearms, Sports Memorabilia

Carbon Offsets & Credits

Carbon-based assets for emerging economy

Tax Credits

Federal, state, and local tax credits to trade in markets

Loyalty Points

Club membership interests and loyalty points

What Are the Benefits of Tokenization?

Fractional Asset Ownership

A digital token can be created for a fractional portion of an asset. This enables shared ownership of an asset and partial asset trading.

Peer-to-Peer Asset Trading

The ownership of tokenized assets can be transferred directly between asset owners and investors without the involvement of third-party intermediaries, such as governmental entities or financial institutions.

End-to-End Asset Traceability

Asset owners and investors can trace the whole history of activities performed over tokenized assets in a distributed ledger. It helps verify asset origin and provenance and prevent fraud and counterfeiting.

Regulatory Compliance

Tokenized assets can be programmed to comply with AML/KYC, ISO 27001/27002, SEC, GLBA, PCI DSSGDPR (for the EU), HIPAA (for healthcare), and other required regulations.

Smart Contract-based Automation

Smart contracts automatically enforce fixed actions related to tokenized assets upon particular events pre-defined by token issuers. For example, asset ownership is transferred to the investor upon payment for the asset.

Automated Recordkeeping

All transactions on tokenized assets, including those initiated by smart contracts, are automatically validated, timestamped, cryptographically encrypted, and recorded in the immutable ledger available to asset owners and investors.

Step-by-Step Process to Tokenize Real World Assets

Asset Tokenization Lifecycle Process v3.0

10XTS will help you streamline the process of planning, launching, and tokenizing your regulatory compliant primary offerings.

The Asset Tokenization Lifecycle Process (ATLP) is a process-based information governance model that formally defines how a real-world asset is designated by a digital, cryptographic token or controllable electronic record.

10XTS follows the ATLP when launching a tokenization project. The plan is fully-defined for clients, who quickly understand and appreciate the process.

Interoperability of Off-Chain Information

Issuers of tokenized real world assets must own the process of creating and managing not just a layer one token, but all of the related non-chain metadata associated with the asset. 

Many financial firms offer asset tokenization and digital securities token services, but in many cases, their systems are isolated within “walled gardens” that do not actually interoperate with other institutions or markets – despite the existence of a layer one token. Nor does any single institution necessarily have the incentive to build those gateways for clients.

This leads to a lack of portability for investor and transaction records and data. To ensure complete ownership and control of all necessary records and data for every asset, investor, entity, and transaction, issuers should only launch an initiative with a framework that enables easy extraction and portability of this information.

Issuers must implement their own, independent Master Data Management (MDM) solution to ensure an immutable link to theirs and their investor’s data to truly maximize opportunities and trading in a decentralized marketplace.

10XTS helps issuers establish a comprehensive information governance, risk, and compliance-based approach to owning their asset and market data independent of any other marketplace operator, broker, custodian, and  intermediary.

Campaign Planning and Project Management

Work with 10XTS to develop high level project targets. This is usually a six to eight month effort implemented in two-week sprints with full dashboard-based metrics and key performance indicator (KPI) reporting.

We will help you develop and implement a tokenized asset plan based on your existing baseline, your targets, your pain points and your differentiating strengths.

We help establish a repeating cycle of measurement, analysis, ideation and/or optimization, and execution.

Our goal for every project is full transparency and taking immediate, corrective action. We pivot based upon what the data tells us.

What you’ll get:

  • A solid, market-validated plan: targets, KPIs, analytics/measurement techniques, and the key milestones
  • Project Management of the offering plan
  • Implementation of project as coordinator
  • Full reporting on KPIs, targets, and project status

Tokenization Costs

The cost and duration of asset tokenization vary greatly depending on:

  • The type of assets to tokenize.
  • The required type of a token.
  • The chosen blockchain platform for the tokenization of assets.
  • The number and complexity of smart contracts.
  • Cross-chain interoperability requirements for digital tokens.
  • The number and complexity of applications (web, mobile, desktop) for token issuers and investors to manage their assets.
  • The type of an asset management solution (a custom or a third-party crypto wallet).

Experience the 10XTS Advantage

  • Industry-leading expertise in compliance automation, ensuring your assets are managed in full accordance with regulations.
  • End-to-end asset tokenization services, from initial analysis to ongoing management and support.
  • Cutting-edge technology that simplifies the investing process, opening up new opportunities for investors and asset owners alike.
  • A dedicated team of professionals with a proven track record of success, committed to helping you achieve your financial goals.

Join the growing list of businesses who have trusted 10XTS to revolutionize their asset management. Embrace the future of investing and experience the benefits of our comprehensive consulting service and software technology implementation.

Contact our team of experts today and discover how 10XTS can transform your asset management experience.