NEWS - Trends to tokenizing assets in Vietnam and Worldwide

Trends to tokenizing assets in Vietnam and Worldwide


“Tokenization” is a buzzword often mentioned in decentralized finance (DeFi). The concept of “Tokenizing Assets” will increasingly become the norm in other segments of the financial world as investors become aware of blockchain and its potential growth opportunities,

Why should tokenize assets?

Our world has many assets that investors want to own, such as real estate, gold, etc. However, many assets of great value are difficult to transfer or physically subdivide, so buyers and sellers often transact by representing, transferring, or owning part or all of the property. These legal papers and agreements are complex, cumbersome, and difficult to keep track of. Therefore, a more efficient solution would be to switch to a blockchain-based digital system linked to an asset.

With tokenization, the liquidity of those assets has grown by leaps and bounds. If we take an example of a $250,000 real estate, it will be quite difficult for everyone to invest. However, if broken down into representative tokens – each with a value of $25 – representing a 0.01% stake in the asset, retail investors can buy the asset.

The trend of asset tokenization in the world

Currently, “moving” real-world assets onto a blockchain offers the advantages of a secure digital platform while preserving the properties of the asset. Securitization is when contractual obligations such as mortgages, personal debt, or accounts receivable are pooled and their cash flows sold as standard units to investors. Since the 1970s, this procedure has become more popular and widely adopted. But asset tokenization goes a step further. Instead of cash flow restructuring like securitization, it also gives investors other benefits such as the right to use.

Realizing the growth potential of asset tokenization, many businesses have started to apply it. The World Economic Forum predicts that 10% of global GDP will be stored on blockchain by 2027. A digital asset banking company has been researching the impact of asset cryptography over the years. Upcoming. According to this research, the globalized tokenization market on the blockchain is expected to reach $24 trillion by 2027. Note that this figure is only valid when including financial assets.

Vietnam – not out of the race

Due to the lack of legal regulations on crypto-assets, some unclear regulations, and different perceptions, problems have arisen: The competent state agencies do not have a basis for proposing measures to prevent, combat, and handle administrative violations related to cryptographic assets. Therefore, many pioneering businesses in asset tokenization will be under a lot of pressure in the context of an incomplete legal framework, especially when the epidemic has a profound impact on current economic activities.

As Mr. Phu Gia (Founder of GIG Capital) also commented, “Access to the digital asset market for most investors is still facing huge legal and technical barriers; more than 90% of the population has not yet accessed this market seek real, sustainable profit.

Aside from the legal issues, the future of asset tokenization depends significantly on interest & trust. Therefore, businesses operating in this field need to have a clear product/service roadmap, a team of legal experts, and financial experts to reduce fraud concerns.

According to the reporter’s research, over the past time, there have been several units that have applied blockchain technology to tokenize assets. Specifically, in October 2021, GIG Capital Investment Fund announced the tokenized real-world asset investment platform GIG Dollar. They offer a way to participate for investors in the community with an accessible, low-risk portfolio of heavily vetted projects. They are applying blockchain technology to bring transparency to all management, operation, and investment activities. The tokenized assets issued in the ecosystem are backed by real assets.

In general, the development potential of digital assets is huge in the financial sector; however, ensuring the stability and sustainability of activities will still depend a lot on policymakers to develop an appropriate legal framework to regulate the market well.

Telegram Channel:
Telegram EN:

Source: Tạp chí Diễn đàn Doanh nghiệp

News Posts