Before the advent of money, the main method of trade was barter - the exchange of goods and services. With the progress, money appeared as a universal means of exchange, which, compared to barter, had the following advantages:

• divisibility: money can express any value
• simplicity of exchange: money can be exchanged for any good or service.

The next step in the development of exchange may be the tokenization of assets.

Tokenization is the transformation of global illiquid assets (such as real estate, bonds, goods, etc.) into a digital form, representing them in tokens. Such assets are called RWA (Real world assets).

Tokenization allows to fractionalize assets into small parts, which increases the liquidity and lowers the entry threshold for investing in such assets.

Imagine, you wanted to become an investor in paintings of famous artists. However, many paintings are worth millions of dollars, and if you do not have that kind of money, you do not have the opportunity to invest in these paintings.

Then a company like Freeport can help you. Freeport has already tokenized several paintings by Andy Warhol. The company presented each painting as 1,000 tokens that anyone can buy. This means that potentially 1,000 people can trade parts of that painting without the need for assessors, lawyers, and art dealers.

Thus, tokenization:

• makes the asset more liquid by increasing the number of exchange participants and allowing trading 24/7
• reduces or completely eliminates the cost of brokers
• lowers the entry threshold for investing in the asset

RWA is one of the most promising areas of the distributed finance market. In just one year from July 2022 to July 2023, the market multiplied 20 times. According to Galaxy's survey, the total amount of funds locked in tokenized assets currently exceeds $3 billion. This amount consists of 37.3% gold and precious metals, 1.63% stocks, 22.98% money markets, 20.04% treasury bonds, 4.38% real estate and 13.27% private credit.

Thus, the market for tokenized assets (RWA) shows impressive growth and diversity, becoming a key element in the distributed finance landscape, which increases its attractiveness for investors.

Let's take a look at the projects from this trend that you can use today:

InvestHub is a project that allows you to launch your own platform for investing in tokenized assets in a matter of weeks. It helps VCs, investment clubs and accelerators to provide opportunities for members to buy assets using cryptocurrency. It provides all the benefits of tokenization that have been described above. InvestHub allows to collect analytics on the listed projects, to customize the created platform according to the customer's requests.

Tangible is a trading platform that allows users to trade tokenized wines, gold bars, watches and real estate.

Goldfinch is a project that helps lending companies raise cryptocurrency from investors for funding.

Ondo Finance offers several tokenized securities, including bonds and funds. Ondo Finance also support the Flux protocol, which allows them to lend against their tokens, keeping their yield.

Tokenization of assets expands new horizons for investors and entrepreneurs, offering unique opportunities to invest in a variety of assets with a low entry threshold and high liquidity. Projects like InvestHub play a key role in this process by providing tools for creating investment tokenization platforms. This not only democratizes access to investment, but also opens doors for innovation in the financial world.

Whether you're looking for a way to enter the world of tokenized assets or want to expand your investment horizons, InvestHub offers powerful and flexible solutions. Contactus today and we'll provide you with a demo so you can personally explore all the benefits and opportunities that tokenization of assets can offer.