Tokenization at eToroX.

What is Tokenization?

Anything can be turned into a token - from property, to people and even paintings. For example you can turn 200g of gold into 200 tokens (or 2,000 tokens, or even 2 million tokens). This token therefore represents a share of the underlying asset. This token is then issued on to a platform like eToroX, where it can be bought or sold.

How it works.

Frequently asked questions

What are tokenized assets?

Tokenization simply converts the rights of ownership of any asset into a digital token which is then available on the blockchain.

What types of assets can be tokenized?

Both traditional and new asset classes can be tokenized (I.E. Equities, commodities, property, art, people, etc.).

Why tokenize assets?

Tokenisation enhances liquidity by cutting out the middleman, making the overall trading of assets more efficient. Token ownership helps to create a new economic model, and fractional ownership sees new diversification models. Moreover tokenisation helps to eliminate temporal and territorial barriers encouraging investing for everyone.

What are intangible assets, fungible assets and non-fungible assets?

Intangible assets represent ideas, notions and concepts – such as copyright, intellectual property, brand perception. Fungible assets are interchangeable assets that encourage easy exchange as they are of equal value, like a dollar bill. Non-fungible assets are unique, non-interchangeable assets that can be swapped, like a piece of art.

What are fungible tokens and non-fungible tokens on the blockchain?

Fungible tokens are tokens that can be replaced by an identical token. In essence, they are interchangeable and their exchange makes no difference to the owner. It is uniform in that it is identical and divisible into smaller units. Non-fungible tokens hold unique information, making them irreplaceable, like a train ticket or birth certificate. While the non-fungible tokens may look alike, the information they contain is different. Non-fungible tokens are non-divisible, meaning one token is one token only.

Who owns the tokens?

Tokenization converts the rights of ownership of any asset into a digital token. The buyer owns the rights despite not legally owning the asset.