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Real World Asset Tokenization - RWA: Scam or Fake News?

Real World Asset Tokenization - RWA: Scam or Fake News?

Monday, February 19, 2024

Much is said about the risks of investing in Crypto Assets and especially Real World Asset-backed Security Tokens - RWA. Draw your conclusions!

Real World Asset Tokenization - RWA is a topic that has gained momentum since 2017. It allows physical assets to be transformed into regulated Security Tokens on the Blockchain network, making them easier to access, exchange, and manage. This has opened up new opportunities, both in Blockchain-driven financial services and in a wide variety of non-financial use cases.

Real World Asset Tokenization - RWA is considered a revolutionary breakthrough in the world of finance and securities, as it allows leveraging the benefits of Blockchain technology on traditional assets. Some of the reasons why real-world asset tokenization is gaining momentum are:

1. Improving economic conditions: High-interest rates in the current cycle are improving the economics of some tokenization use cases. Real-world assets - RWA, tokenized as Security Tokens, are becoming a hedge against market volatility. In addition, the current high-yield environment has given new importance to the opportunity to digitize financial assets such as sovereign bonds, money market funds, and repurchase agreements.

2. Change in the perception of real-world assets: Governments and regulators around the world have been making regulatory changes to benefit and/or launch their own real-world assets. This indicates a shift in how real-world assets are viewed and opens up new opportunities for tokenization through Security Token Offerings - STOs.

3. Maturity of digital asset teams: Many financial services companies have developed significant digital asset teams and capabilities in recent years. As these teams mature, we are likely to see an increase in the use of tokenization in financial transactions.

The tokenization of assets through regulated Security Tokens has several advantages and potential use cases:

1. Increased accessibility and liquidity: Tokenization allows real-world assets to be fractionalized, making them more accessible to a wider range of investors. In addition, Security Tokens can be exchanged in a decentralized network, which makes them faster, cheaper, and safer than traditional methods of asset exchange.

2. Portfolio diversification: Tokenization of real-world assets allows for greater portfolio diversification, as investors can access a wide range of assets that historically had high investment thresholds.

3. Operational efficiency: tokenization of real-world assets enables easier tracking and servicing of investors, as well as near-instantaneous, low-cost transfers and settlements programmed through smart contracts / Smart Contracts.

4. Transparency and security: Tokenized assets are registered on Blockchain which provides a transparent and immutable record of ownership. This enhances security and enables sovereign identity and data privacy solutions.

5. New markets and opportunities: Tokenization of real-world assets opens up new markets and investment opportunities, enabling easier trading in global markets and facilitating access to assets that would otherwise be out of reach for small investors.

Recent developments in real-world asset tokenization include:

- Iowa has passed a law redefining tokenized digital assets as personal property, providing a clear legal framework for asset tokenization.

- Japan is considering new legislation that will allow the issuance and trading of cryptocurrencies, Security Tokens, and digital assets, which could further boost tokenization in the country.

- Citibank is exploring asset tokenization in partnership with WisdomTree, demonstrating the interest of large financial players in this technology, in the same way that JP Morgan and Blackrock, among others, have been doing.

Opportunities in Latin America and Expedit's advantages as a leading platform in LatAm

Latin America is experiencing significant growth in the field of real-world asset tokenization. Several recent reports and news stories highlight the interest and adoption of asset tokenization in the region. In addition, Expedit stands out as a leading platform in LatAm that offers unique opportunities in this field.

1. Opportunities in LatAm:

The tokenization of real-world assets is becoming an exponential trend in Latin America.

- The region has a broad base of technological talent and quality education.

- The competitive costs and high quality of work offered by technology service providers in Latin America make it an attractive option for companies around the world.

- Geographical proximity and cultural similarity with the United States make Latin America an attractive destination for outsourcing technology services.

- The governments of several Latin American countries are investing in digital infrastructure and promoting the adoption of the Blockchain.

2. Advantages of Expedit as a leading platform in LatAm:

- Expedit is a leading platform in Latin America that specializes in the tokenization of real-world assets - RWA, through the regulated issuance of Security Tokens - STOs.

- The platform offers investors unprecedented access to the liquidity and transparency of tokenized assets through its own Secondary Market.

- Expedit allows investors to diversify their portfolios easily and safely.

- The platform stands out for its focus on inclusion and creating a more dynamic investment future.

- Expedit offers investors the opportunity to convert traditional assets into regulated Security Tokens, giving them access to a wide range of investment opportunities.

Expedit offers significant added value to both investment project developers and investors around the world:

For investment project developers:

1. Access to capital: Expedit provides project developers with access to a wide network of international investors. This allows them to obtain the necessary financing to carry out their projects and accelerate their development.

2. Tokenization as a Service: Expedit has a team of investment, financial and legal experts who provide strategic advice to project developers. This includes assessing the financial and legal viability of projects, structuring financing, and optimizing the value proposition to attract investors.

3. Extensive experience in different sectors: Expedit has experience in a wide range of sectors, including renewable energy, real estate, infrastructure, and technology. This allows them to provide a specialized approach tailored to the specific needs of each project.

4. Risk mitigation: Expedit helps project developers mitigate the risks associated with project financing and implementation. This is achieved through careful risk assessment and the implementation of effective risk management strategies.

For investors:

1. Access to global investment opportunities: Expedit offers investors the opportunity to access a wide range of investment projects in LatAm. This allows them to diversify their portfolios and take advantage of opportunities in different markets and sectors.

2. Evaluation and selection of projects: Expedit performs a rigorous evaluation and quality assessment of the Assets before presenting them to investors. This includes financial analysis, risk assessment and evaluation of project viability. Investors can be confident that the quality of the Assets presented by Expedit has been carefully selected and evaluated.

3. Personalized advice: Expedit provides personalized advice to investors, taking into account their financial objectives and investment preferences. This helps them make informed decisions and maximize the return on their investments.

4. Transparency and accountability: Expedit is committed to maintaining high standards of transparency and accountability in all its operations. Investors can be confident that their investments will be managed ethically and professionally not only by international standard auditing companies but also by the Banking and Securities Authorities.

At Expedit we are evaluating investment projects in LatAm to be Tokenized and you can send yours to be evaluated through the following link SEND NOW

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