RWA Tokenization Services
What is RWA token and how it works
An asset token represents a tangible or intangible real-world asset on the blockchain. Through tokenization, these assets are divided into smaller digital units on the blockchain, enabling enhanced liquidity, market access, fractional ownership, and increased transparency.
Tokenized Assets Market Growth Forecast
A large chunk of the world’s wealth today is locked in illiquid assets. In a survey conducted in the U.S. in 1997, 56%+ of assets held by taxpayers with a net-worth of between $600,000 and $1 million were illiquid.
Boston Consulting Group analysts expect that by 2030, the market capitalization of RWA will reach $16 trillion. In their opinion, a part of this amount will be invested in DeFi projects of such established ecosystems as Ethereum.
Increased interest in RWA in DeFi
Real World Asset tokenization in DeFi is booming, with Total Value Locked (TVL) increasing almost 6x since April 2023 and now stands at over $6.3 billion, showing increased interest from both institutional and retail investors.
More and more projects are entering the asset tokenization market, providing an innovative way to unlock liquidity and connect traditional finance with decentralized protocols.
Our proved experience in RWA: Polytrade
Polytrade is a cutting-edge, blockchain-based platform that’s transforming the way small and medium-sized businesses manage their finance. By leveraging advanced technology, it facilitates immediate payment against invoices, helping businesses to meet their short-term financial obligations without delay.
Meanwhile, it offers a robust and secure avenue for investors to earn regular interest by funding these immediate payments. Our team has developed smart contracts and a liquidity pool system, thereby automating and securing the process from end to end.
How it works
Imagine John, who runs a furniture manufacturing business and sells his products to IKEA on a three-month credit term. This means that once John ships an order to IKEA, it would take 3 months for him to receive the sale proceeds. During this period, he must cover various costs such as employee salaries, utility bills, and purchasing raw materials. Here, Polytrade steps in, purchasing John's invoice and providing him with an immediate payment of typically 95% of the invoice amount.
Polytrade recoups the full amount from IKEA after three months, with the 5% difference serving as their earnings.
Meanwhile, the platform is funded by investors depositing their crypto assets, providing a win-win situation where SMEs meet their short-term financial needs, and investors receive regular interest on their investments.
How can you get benefits from RWA tokenization?
Schedule a meeting with our CTO. Let Cyber Bee become your trusted technical partner and unlock opportunities for market expansion, increased revenue and liquidity.
What we can tokenize
Real Estate
Art & Collectibles
Investment Funds
Commodities
Intellectual Property
Debt Instruments
Tokenization benefits
Liquidity Boost
Fractional Ownership
Global Reach
Enhanced Transparency
Cost Efficiency
Streamlined Transactions
Types of tokens we create
Asset-backed token
Utility token
Payment token
Security token
Core Technologies
Blockchains
Smart contracts
File Storage
Oracles
ERC Tokens
Our Execution Process
Initial Consultation
Technical and Legal Framework Setup
Token Issuance and Distribution
Post-Issuance Support and Maintenance
What are the benefits of asset tokenization?
Asset tokenization offers multiple benefits:
- Liquidity Boost: It transforms traditionally illiquid assets like real estate or art into tradeable tokens, facilitating easier access and sale.
- Fractional Ownership: Assets are divided into smaller, more accessible units allowing more people to invest with lower capital.
- Global Reach: Asset tokens can be traded on global platforms, bypassing traditional borders and expanding the potential investor base.
- Enhanced Transparency: Every transaction is recorded on the blockchain, providing a transparent and immutable history that fosters trust among investors.
- Cost Efficiency: It often reduces the number of intermediaries and associated costs in asset trading and management.
- Streamlined Transactions: Blockchain technology ensures quicker settlements and transfers.
How much does it cost to tokenize an asset?
The cost to tokenize an asset generally falls between $25,000 to $110,000. This range accounts for the complexity of the asset, legal requirements, the blockchain platform chosen, and other specifics of the tokenization process. Within this range, expenses can include legal consultation, technical development, compliance checks, marketing, and listing fees on exchanges. However, prices can fluctuate based on various factors, and it's recommended to get a tailored quote from a specialized service provider.
What role do smart contracts play in asset tokenization?
Smart contracts are self-executing contracts with the terms of agreement directly written into code. In asset tokenization, smart contracts automate and ensure the enforcement of specific terms and conditions. They manage the issuance, trade, and, sometimes, the redemption of tokens. Smart contracts also ensure that all transactions are compliant with predefined rules, making the process trustless and reducing the need for intermediaries.
How can asset tokenization be used for fundraising?
Asset tokenization can be used for fundraising by allowing entities to sell fractional ownership of their assets in the form of tokens. For instance, a startup might tokenize a portion of its equity or a real estate developer might tokenize parts of a property project. Investors purchase these tokens, providing upfront capital to the entity. As the project or company prospers, the token's value can increase, offering potential returns to investors. This method can be an alternative to traditional fundraising methods, granting quicker access to global capital.