According to reports, alternative traditional investments constitutes an expanding $1.7 trillion industry. Although being profitable, these liquids are not made to be accessible to average investors. The answer to this is tokenization. Tokenization is a term that is used to refer to the conversion of the rights of an asset into a cryptographic token that is being issued on the blockchain.
Why Tokenization Is Needed
Tokenization of assets is needed because of these reasons;
- Decentralized ownership; with the tokenization of assets, there will be no need to trust a bank or any other financial institution to help keep safe ownership of assets.
- Transaction execution based on smart contracts; with the tokenization of assets completed, self-executing security systems that are based on smart contracts for more complex payment structures to be automatically reflected will be made available.
- Instant execution; the blockchain technology is capable of accommodating both transactions as well as a record of ownership. The transfer of ownership of assets is made as easy as possible. Ordinarily, users will have to wait for at least two to three days before transfers are completed, but with the tokenization of assets, instant transfers will be facilitated.
- Enhanced liquidity; tokenization will ensure that users are able to benefit from blockchain-based liquidity and at the same time offering them the opportunity to have it traded.
- Access; like cryptocurrencies, these tokenized assets are designed to be traded at any time by anyone.
What Smart Valor Seeks To Do
The Smart Valor platform is a decentralized blockchain based network that allows issuers of assets to only create but also distribute tokenized alternative investments. To enable the platform to carry this out, several layers have been put in place to ensure that the platform truly offers alternative investment solutions. This platform has put in place distributed nodes among key participants and it seeks to address the need to cope with some of the regulatory constraints.
The vision of this network is to democratize the access to value and at the same time provide best-of-breed finance and also provide frictionless alternative investment solutions.
Components Of The Valor Platform
- Licensed exchange; the Valor platform has integrated a licensed exchange that will facilitate secondary market trading.
- Secure custody; the platform provides a safe place for the storage of tokenized assets.
- The Valor platform has integrated a decentralized marketplace that will be used for auctioning and trading liquid assets.
- The platform provides a marketplace for the listing of assets that have been tokenized or backed by real value.
- The Valor platform also provides certain rewards for contributors and investors.
Who The Valor Platform Has Been Developed For
This platform has been designed for;
- Investors; it will offer them the opportunity to unlock all previous inaccessible investment opportunities.
- Asset issuers; the Valor platform will access as well as engage new audiences and investors, helping them raise funds through fully compliant tokenization of assets.
- Service providers; with this platform, service providers will be able to position themselves at the forefront of new financial technologies that will help them reach their desired audience.
