The most striking example of tokenization is NFT tokens (non-interchangeable tokens). According to the data, the volume of the NFT market has exceeded $750 billion. The basis of the NFT market consists of some works of art, which are often far from the notion of art.
Nevertheless, due to the tokens' properties, even a simple pixel picture acquires its significant value.
In addition, the tokenization of works of art has become a trend. For example, some results by one of the most popular and iconic contemporary artists, Banksy, were sold as NFT tokens.
Another promising industry for tokenization is real estate. UK-based Moore Global predicts that the expected volume of the tokenized real estate market could be $1.4 trillion by 2026.
In the summer of 2020, the regulated Overstock tZERO exchange began trading security tokens, proof of ownership of a luxury resort in Colorado. The launch saw record trading volume, but interest was dampened by a market slowdown caused by the coronavirus pandemic. Subsequently, tZERO partnered with crowdfunding company NYCED Group to tokenize $18 million worth of properties.
In another example from this area, an Indian fintech company launched a blockchain-based registry in September 2021 to provide fractional ownership of the real estate in the country.
How does tokenization work in financial markets?
Financial markets are one of the segments that have quickly adapted to the tokenization trend. This is exactly the example of smart banking assets, according to archetypes. And the demand for using tokens there is extremely high.
what is tokenization and how does it work https://www.verygoodsecurity.com/blog/posts/network-tokenization-for-beginners
This is understood both at the company and the country levels, which affects the adaptation of tokenization in different regions. In 2018, the High Tech Park regulation launched a crypto platform, which tokenized popular assets - stocks, bonds, indices, ETFs, commodities, currencies, and cryptocurrencies. The crypto platform was the first in the CIS and one of the first in the world to offer users a wide range of tokenized assets.
The owner of a tokenized asset on Currency.com has many of the rights that the owner of a real asset has. That is, owners of tokenized shares receive a dividend adjustment in tokens, owners of tokenized bonds receive income in tokens equal to the coupon income on the corresponding "paper."
Not only individuals but also legal entities can invest in the crypto-platform.
To do this, they must undergo a simple registration and verification procedure. After that, every company working with the platform will get access to the global tokenized markets and an exclusive level of service.
There is no doubt that the tokenization process is currently at an early stage of development. However, its prospects are enormous. The growth of this sphere requires movements in the regulatory adaptation of tokens globally. However, there are already companies and jurisdictions that have made friends with tokenization and offer a wide range of tokenized assets to individuals and businesses from around the world.
