Larry Fink on Tokenization is the Future of the Next Generation

"I believe the next generation for markets, the next generation for securities, will be tokenization of securities," BlackRock CEO Larry Fink said during the New York Times DealBook event.
We at Fusang have been busy exploring regulated solutions and structures which will allow us to unveil our own unique turnkey tokenisation solution for non-digitally native assets. Along with a custody and settlement system, the aim is to allow for fuss free tokenisation, providing issuers and investors a regulated fuss free marketplace for tokenised assets.
Join us on this journey and come with Fusang as we chart the course to the future. To explore, view our website at: link.fusang.co/lfv
#Fusang #tokenization #digitalassets #securities

[@chesstictacs3107]

Can someone knowledgeable explain why is tokenization would be better than the existing system? Why do we need it?

[@MikeyJoker2]

Tokenization of assets, including real estate, indeed has the potential to revolutionize the investment landscape by offering various benefits such as increased transparency, security, liquidity, and accessibility. Here are some key points highlighting the significance of tokenization in the context of real estate investments:
1. **Increased Accessibility**: Traditionally, real estate investments have been accessible mainly to wealthy individuals or institutional investors due to high entry barriers. By tokenizing real estate assets, fractional ownership becomes possible, allowing smaller investors to participate in real estate markets that were previously out of reach.
2. **Enhanced Liquidity**: Tokenization can improve liquidity in real estate investments by enabling investors to trade their tokens on digital asset exchanges. This liquidity can be particularly beneficial for investors looking to exit their positions or diversify their portfolios without the need for lengthy sale processes typical of traditional real estate transactions.
3. **Transparency and Security**: Blockchain technology, which underpins asset tokenization, offers a high level of transparency and security. Transactions recorded on a blockchain are immutable, reducing the risk of fraud and ensuring the integrity of ownership records. Investors can verify ownership, track transactions, and access real-time information about their investments.
4. **Fractional Ownership**: Tokenization allows real estate assets to be divided into smaller, tradable tokens, enabling investors to own fractions of high-value properties. This fractional ownership model provides investors with more flexibility and diversification opportunities, as they can invest in multiple properties with varying investment amounts.
5. **Smart Contracts and Automation**: Smart contracts can be used to automate various processes in real estate tokenization, such as rent distribution, dividend payments, and compliance with regulatory requirements. This automation can streamline operations, reduce administrative costs, and enhance the overall efficiency of real estate investment transactions.
In conclusion, the tokenization of real estate assets has the potential to democratize access to real estate investments, improve liquidity, increase transparency, and offer new opportunities for investors of all sizes. While there are challenges and regulatory considerations to address, the continued development of tokenization technology is likely to reshape the way real estate investments are made and managed in the future.