Overview of platforms for asset tokenization

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Asset tokenization platforms exist to increase the availability and liquidity of various assets. They limit barriers to investment, simplify asset management and increase transaction transparency. Asset tokenization platforms exist to increase the availability and liquidity of various assets. They limit barriers to investment, simplify asset management and increase transaction transparency.

Such platforms also provide global access to markets, speed up buying and selling processes and provide new opportunities for portfolio diversification. In addition, they facilitate regulatory compliance, creating a more flexible, accessible and efficient market for investors and issuers.
  Ondo Finance 

Ondo Finance is a comprehensive crypto ecosystem focused on developing infrastructure solutions for traditional financial institutions and decentralized financial systems (DeFi).

Ondo Finance has undergone the US Securities and Exchange Commission (SEC) approval process. The system uses its own token, ONDO.

Ondo Finance includes two divisions:
  1. the asset management division. It is responsible for creating tokenized products.
  2. technology department. It is in charge of DeFi protocols.
Currently, Ondo Finance has introduced 4 products: 3 funds and the decentralized lending protocol Flux Finance.

OUSG (Ondo US Government Bond Fund) is an investment instrument backed by US Treasury bills. The digital assets representing the rights to OUSG assets have fast and continuous transferability. OUSG holders receive passive income from investing in this token.

USDY (US Dollar Yield) is an investment instrument issued by Ondo USDY LLC. This instrument is backed by bank deposits and short-term US Treasury bonds. USDY is available to both individuals and institutional investors who are not US citizens.

In order to be a party to a transaction on Ondo Finance, you must be both an accredited investor and a qualified buyer.

To be a buyer you must be:
  1. an individual (including any person who owns a joint, common ownership or other similar interest in an issuer that is excluded under Section 3(c)(7) of the Investment Company Act together with that person's eligible spouse) who owns at least $5,000,000 in "investments" as defined below.
  2. A company that owns at least $5,000,000 in investments that was not created specifically for investment in the Fund and that is owned directly or indirectly by two or more individuals who are related as siblings or spouses (3) A trust that is not subject to paragraph 2 and that was not formed for the specific purpose of investing in the Fund
  USDY tokens  

There are three main processes for USDY:
  1. Subscriptions, through which new USDY tokens are created;
  2. Redemptions, whereby the investor returns Ondo tokens to get their money back (plus accrued income);
  3. Transfers, whereby the investor sells their tokens on the secondary market or uses their tokens in DeFi.
Subscriptions:
  1. Deposits in USD via bank transfer, in USD via web interface, in USD via direct transfer of stable coin to an address.
  2. Categorization.
  3. Generation of token certificate. (A token certificate is literally a PDF certificate that records the deposit and payouts).
  4. Issuance and approval of the token.
Redemptions:
  1. Request for redemption.
  2. Execution of redemption.
Transfers:

As tokens are only issued after the Limited Period, they can be transferred to anyone within the relevant geographical area at your discretion, including selling, using in DeFi and buying more tokens from others.

Through the use of Ondo Finance, rights to a variety of assets including bonds, stocks, real estate and cultural property can be tokenized.

  Centrifuge 

Centrifuge is a platform offering an infrastructure and ecosystem for tokenizing, managing and investing in a wide range of real assets.
  • Full Diversification:

    Centrifuge supports tokenization of a variety of assets including structured credit, real estate, US Treasuries, carbon credits, consumer finance and others.

  • Assurance and Security:

    All Centrifuge asset pools are fully secured, investors receive legal protection, and the protocol is independent of asset class.

  • Decentralized Ecosystem:

    Centrifuge is evolving beyond the financial infrastructure to include a DAO (Decentralized Autonomous Organization) supported by a community of financial professionals and developers.
  Tokenization:  

Centrifuge tokenizes real assets by creating digital versions of them and splitting them into tokens representing ownership stakes. Pools bring together asset issuers and investors, allowing issuers to fund real assets such as consumer finance, real estate, or U.S. Treasuries by leveraging investments from crypto investors and DeFi protocols. The asset initiator acts as an intermediary, providing real assets to the issuer in exchange for funding. NFTs are tokenized versions of real assets that can be locked as collateral to obtain funding.

  Benefits for investors 

  • Yield: Investors provide the liquidity that issuers use to fund assets and receive a return.
  • Diversification: Investors can diversify their portfolio by investing in different types of tokenized assets.
Centrifuge offers a platform for businesses to tokenize their tangible assets and provide the necessary capital through blockchain technology. Investors, acting as lenders, invest their funds in the form of stablecoins. These funds are used to lend to the business, creating a mutually beneficial relationship. Investors receive a return on their participation, which depends on the profits earned by these businesses.

Before investing, investors can scrutinize information about the businesses available on the platform. This scrutiny allows investors to make informed decisions by assessing the quality and potential of the businesses that are seeking funding.

In this way, the platform can be used to finance the activities of enterprises.

  In the United States, among the real assets subject to tokenization, in addition to real estate and the possibility of tokenization of metals, it is also possible to tokenize financial instruments such as bills of exchange, liabilities, as well as tokenization in order to create enterprise capital. 
 Zeniq 

Zeniq Technologies is an innovative blockchain-based platform designed to enable fast and secure trading of a wide range of assets, including digital assets.

The platform provides the unique ability to tokenize up to 80 different physical asset classes by creating interchangeable token platforms (NFTs), expanding the scope of this technology beyond real estate to include valuable assets such as gold, precious materials, gemstones and digital art.

Zeniq Technologies' platform provides the ability to partially commercialize assets without the need to physically own them, which is one of the key benefits of blockchain-based tokenization, while providing a high degree of security and transaction speed.

The platform provides the ability to participate in liquidity provisioning (LP) for trading pools, which involves contributing equivalent amounts of each underlying token in exchange for pool tokens. Pool tokens are representative assets reflecting LP shares of total reserves and can be exchanged for underlying assets at any time.

The ZeniqSwap ecosystem is based on the interaction of three groups of participants:  liquidity providers, traders and developers.  
  • Liquidity providers are incentivized to contribute ZEN-20 tokens to shared liquidity pools, allowing them to be rewarded for providing liquidity on the platform.
  • Traders can exchange tokens for each other while retaining a fixed fee of 0.30%, which is transferred to liquidity providers as a reward for their participation.
  • Developers have the option of direct integration with smart contracts to implement innovative token-related features.
The Zeniq NFT platform will target the digital art market segment, providing participants with the ability to trade and invest in digital artworks using blockchain technology.

Having a professional managed valuation of digital artworks on the Zeniq NFT platform is key to ensuring transparency and trustworthiness of trading operations, thus increasing confidence in the NFT market and making it more attractive to investors.

  Virtuzone 

Virtuzone is an equity tokenization platform operating in Dubai, created by Virtuzone, a leading business solutions provider, and TOKO Network, a fintech platform.

The procedure for tokenization is as follows:
  • A startup wishing to raise funds provides the necessary documentation and information about its project to the Virtuzone platform and TOKO Network.
  • The Virtuzone and TOKO Network platform conducts the necessary due diligence procedures and assesses the risks of the project.
  • The startup issues shares in the form of digital tokens registered on the blockchain.
  • The tokens are sold to investors through the Virtuzone and TOKO Network platform.
Thus, tokenization of art objects as well as equity securities - shares - is being actively promoted in the UAE. There are also precedents of tokenization in the real estate sector. For example, the MANTRA company (see below) concluded a deal on tokenization of real estate assets worth $500 million.
 Bitfinex Securities  

Bitfinex Securities is a platform designed for trading tokenized stocks and bonds, as well as for token placement. This platform is owned by crypto exchange Bitfinex. The company is registered with the AIFC.

The platform aims to provide access to capital for previously undervalued companies, while empowering investors to invest in innovative financial instruments such as stocks and bonds based on blockchain technology.

By taking advantage of blockchain technology, the platform aims to overcome the limitations of traditional global financial systems and introduce long-awaited innovations that will increase access to tokenized securities for investors and capital raising for companies.

Bitfinex Securities offers issuers the following services:
  1. A regulated, efficient and global solution for raising capital through equity offerings and admission to trading.
  2. Solutions for debt issuers that are currently undervalued by traditional capital markets.
  3. An opportunity for fund managers to raise investment for their portfolios and for investors to acquire stakes in listed funds.
This platform specializes in tokenization of financial instruments.   Real asset tokenization project (Intebix, Mastercard and Airba Pay) 

The platform provides a mechanism for the interchangeability of digital assets, allowing the conversion of cryptocurrency into virtual reward units used in the Technodom Plus loyalty system. Digital reward units can be used to purchase goods and services on the Technodom network.

The conversion process is based on the use of blockchain technology and smart contracts to create digital tokens representing rights to real assets (secured tokens).

The system also provides an opportunity to convert virtual units of remuneration into cryptocurrency for further trading on the Intebix exchange or withdrawal into national currency using Mastercard plastic cards.

The platform offers wide opportunities for tokenization of loyalty programs of retail chains in Kazakhstan, financial products of banks, as well as commodity assets of large producers. This approach ensures attraction of new users and investment resources.

The created platform allows tokenizing both raw materials and various financial instruments. The platform will allow tokenization of traditional assets, including real estate and securities. All assets within this system are recognized as secured.

  Thus, tokenization of financial instruments is quite common in Kazakhstan in order to democratize their turnover. Thus, decentralized turnover of real assets will allow for flexible transactions.  
 Securitize  

Securitize is a platform that offers capital raising services for businesses. It has developed a platform that allows companies to issue shares in the form of digital tokens registered on the blockchain.

In 2023, shares of Spanish real estate fund Mancipi Partners were tokenized on the Securitize platform.

The platform has issued security tokens representing digital assets linked to shares of Spanish real estate fund Mancipi Partners.
Securitize made its first tokenized share issue in 2023 as part of the European Union's pilot regime for distributed ledger technology.

Securitize tokenized a stake in the Healthcare Strategic Growth Fund II in partnership with asset manager KKR in 2022.

In fact, tokenized assets become more liquid as they can be traded on secondary markets. Hence, it is the tokenization of securities that are part of a firm's capital. The platform allows tokenization of real assets, which subsequently makes it possible to attract additional funds into the capital of the company, increase its investment attractiveness and generate the highest profit.

Despite the adoption of regulatory documents, such as the Markets in Crypto-Assets Regulation (MiCA), the number of platforms and projects in the field of tokenization in the European Union remains limited. The market as a whole is cautious about this technology, as the question of regulation at the level of EU legislation and individual countries is very complex.

Securities tokenization is developing relatively successfully in the EU, while the tokenization of cultural objects faces significant obstacles. This factor differs from the situation in the UAE, where the tokenization of cultural objects has become more widespread.

Not all EU countries have implemented the EU Pilot Regime Regulation and the EU regulatory "sandbox," applying local legislation, which complicates the possibility of issuing tokens.
 MANTRA Chain 

MANTRA Chain operates as a blockchain-based platform specializing in the tokenization of real assets in the financial technology industry. The company was founded in 2020 and is domiciled in Hong Kong and offers regulatory compliant infrastructure solutions to institutions and developers to create, issue and manage tokenized assets using blockchain technology that provides secure and transparent transactions.

MANTRA Chain primarily serves the financial sector by providing solutions that meet international regulatory standards and provides split and tokenization of real assets including works of art, various commodities, and real estate. The company specializes in tokenization of real assets, in particular - real estate. Thus, MANTRA has entered into a deal with MAG Group ("MAG") to tokenize assets worth $500 million.

The tokenization process will take place in stages. The first phase will tokenize the assets of the Keturah Reserve residential project located in Meydan, Dubai, as well as real estate in the $75 million Ritz-Carlton Residences Dubai Creek project. Investors who buy tokens will receive returns in the form of Mantra's Stablecoin and OM tokens. Stablecoin returns are expected to be 8% and investors will also receive additional OM tokens.

Mantra, in an effort to integrate the global financial ecosystem into a unified network, is focused on not only innovating but also making its infrastructure attractive to builders, institutions, enterprises and users interested in real-world asset (RWA) opportunities.

  XinFin Network 

XinFin Network is a platform that integrates the principles of public and private blockchains. This architecture provides a combination of the transparency and openness of public networks with the high processing speed and enhanced security characteristic of private systems. The company was incorporated in 2017 in Singarpur.

XinFin's XDC technology empowers companies to digitize and structure their financial needs, making them accessible to a wide range of investors, including banks and non-banks. XDC protocol based on the XDC token. The XDC network is designed to support Real Asset Based Products (RWAs) that will expand the availability of trade finance assets in the capital markets, while providing access to the necessary financial resources for small and medium-sized enterprises (MSMEs) facing funding gaps. This year has seen a nearly six-fold increase in the volume of the tokenized U.S. Treasury bond market, reaching $622 million. This demonstrates the growing trend of integrating real assets into blockchain technology. The XDC network supports this process by providing a platform for the circulation of tokenized Treasury bonds.

  Thus, platforms in Asia are often used by foreign persons (e.g. in the case of US bond tokenization) to tokenize securities. Consequently, financial instruments also act as real assets. 
The advantages of tokenizing assets include increased liquidity, accessibility, and transparency. Tokenization allows assets to be divided into smaller parts, making them accessible to a broader range of investors. This is particularly beneficial for large and expensive assets such as real estate or artwork. Increased liquidity means that investors can more easily and quickly sell their shares, reducing risk and making investments more attractive.

Additionally, tokenization ensures transparency, as all transactions are recorded on the blockchain, reducing the risk of fraud and increasing trust among market participants.

Tokenization offers an alternative path for raising investments, especially for startups and small companies. Traditional methods of raising capital, such as IPOs or venture funding, often require significant time and money, as well as strict regulatory compliance. In contrast, tokenization provides a more flexible and faster way to raise funds. Companies can issue tokens that represent shares in their assets or rights and sell them directly to investors through tokenization platforms. This allows them to attract capital not only from traditional sources but also from a broader international investor base, including both retail and institutional investors, significantly expanding growth and development opportunities.

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