Choosing your partner in asset tokenization: Companies or platforms?

This article will explore the rise of asset tokenization companies, highlighting the increasing number of firms offering these innovative solutions as well as the differences between working with dedicated asset tokenization companies versus integrated platforms.

The rise of asset tokenization companies

Asset tokenization refers to the process of representing ownership of real-world assets, such as real estate, art, or commodities, on the blockchain through digital tokens. And the asset tokenization companies are playing a crucial role in revolutionizing the way we think about and interact with traditional assets.  

According to Statista, by 2030, real estate is predicted to account for around one-third of the tokenized asset market, making it the most prevalent category which leads to the increasing number of companies offering asset tokenization solutions. 

By tokenizing assets, these companies are providing investors with new opportunities to access previously illiquid or inaccessible markets, while also offering improved transparency, liquidity, and accessibility.

One of the primary services offered by asset tokenization companies is the creation and management of digital tokens that represent ownership of physical assets. These tokens can be traded on secondary markets, allowing investors to buy, sell, and transfer ownership of the underlying assets with greater ease and efficiency. 

Additionally, many of these asset tokenization startups provide end-to-end solutions for the entire tokenization process, that include conducting due diligence on the underlying assets, securing the necessary legal and regulatory approvals, and ensuring the seamless integration of the tokenized assets into blockchain-based platforms. 

Some asset tokenization companies also offer advanced features, such as automated dividend distributions, fractional ownership, and integrated custody solutions, further enhancing the accessibility and attractiveness of these novel investment opportunities.

As the demand for alternative investment options continues to grow, the rise of asset tokenization companies is expected to continue. By bridging the gap between traditional assets and the digital world, these companies are ushering in a new era of financial innovation and democratizing access to previously exclusive investment opportunities. 

The differences between asset tokenization companies vs asset tokenization platforms

In order to select an appropriate supplier, businesses are required to meticulously assess their specific requirements, discerning whether their needs align with the service offerings of an asset tokenization company, or the software solutions provided by an asset tokenization platform.

Asset tokenization platforms

They are the software that allow businesses to tokenize their assets with a number of features, including: 

• Token creation tools: Platforms offer tools for businesses to easily create tokens representing their assets. 
• Token storage wallet: Platforms can offer wallets that enable businesses to securely store their tokens. 
• Exchange: The platform enables businesses to trade their tokens via an exchange. 
• Payment gateway: The platform can provide a payment gateway enabling businesses to accept tokens as payment for goods and services.

For example: Rarible, Polymath, Securitize 

Asset tokenization companies

These businesses offer asset encryption services, which include: 

• Token creation: They assist businesses in creating tokens that represent their assets. 
• Token management: They help businesses manage their tokens, including tracking token ownership, profit distribution, and regulatory compliance. 
• Token trading: They support businesses in trading their tokens on exchanges. 
• Consulting services: They can provide consulting services to businesses on various aspects of asset tokenization, such as legal, technical, and financial considerations. 

For example:  Synodus, Solulab, Chainlink 

Which one to choose: An asset tokenization platform or an asset tokenization company

As you embark on your asset tokenization journey, understanding the pros and cons of these two options can mean the difference between a seamless transition and a complex navigation through uncharted waters. Here are the basic steps that might help you pick the best solution.

Analyzing your needs

Before choosing an asset encryption platform or company, businesses should carefully assess their requirements by answering the following questions: 

• What is the aim of asset tokenization? (e.g., raising capital, increasing liquidity, improving operational efficiency) 
• What types of assets will be tokenized? (e.g., real estate, stocks, bonds, etc.) 
• Who is the target audience? (e.g., individual investors, institutions, etc.) 
• What level of regulatory compliance is needed? 
• What is the expected budget for asset tokenization?

Comparing the options

Based on the analyzed needs, you can compare the two options as follows.

With asset tokenization platform

Advantages: 

• Wide reach: Easily connect with numerous potential investors in the global market. 
• Process automation: Reduce manual procedures, saving time and costs. 
• High transparency: Every transaction is recorded on a distributed ledger, ensuring transparency and traceability. 
• Low costs: Transaction fees are often lower than the costs of hiring a company to tokenize assets. 

Disadvantages:  

• Little customization: Customization capabilities for specific business needs may be limited.  
• Limited support: Businesses may have to learn and resolve technical issues on their own.  
• Cyber security risks: Be careful when choosing a reputable platform to ensure asset safety.

With asset tokenization company

Advantages: 

• In-depth services: A wide range of services, including consulting, token issuance, and management. 
• Custom solutions: Asset tokenization solutions are tailored to meet the specific needs of your business. 
• Expert support: Intensive technical and legal support are provided. 
• Risk mitigation: Businesses are supported by minimizing the risks associated with asset tokenization. 

Disadvantages: 

• High costs: Service fees of asset tokenization companies are often higher than the fees of using the platform directly. 
• Less flexibility: Businesses may be heavily reliant on asset tokenization companies, which can limit their flexibility.  
• Difficulty comparing prices: It can be challenging to compare prices between companies due to the complexity of their services.

Making the right choice

Asset tokenization platform is suitable with: 

• Start-up or limited budget businesses 
• Businesses want to reach a large market quickly. 
• Businesses need simple asset encryption. 

Asset tokenization company is suitable with:  

• Businesses have complex asset encryption needs. 
• Businesses need a customized asset tokenization solution. 
• Businesses want in-depth support. 
• Businesses are willing to pay higher costs for professional services

Top 20+ leading asset tokenization development companies in 2024

The growing prominence of asset tokenization can be attributed to a confluence of factors. The increasing demand for more efficient, transparent, and accessible financial instruments has driven the adoption of this innovative technology. Additionally, the maturing regulatory frameworks and the widespread acceptance of blockchain-based solutions have further bolstered the growth of the asset tokenization industry. 

Corporations, financial institutions, and even individual investors have recognized the potential of asset tokenization to unlock new avenues for investment, liquidity, and portfolio diversification. This has led to a proliferation of specialized asset tokenization development companies, each vying to provide comprehensive solutions to address the evolving needs of the market. 

Here are the leading companies have emerged as the industry’s leading providers, offering a wide range of services and cutting-edge asset tokenization solutions: 

Asset tokenization solutions with Synodus

As a top blockchain partner, Synodus guides you through asset tokenization with tailored tech solutions. With over 30 successful digital conversions, we ensure project success. 

The notable aspect of our services is the provision of a complimentary consultation on asset tokenization.  

Kickstart the process by initiating a request for a free consultation with one of our Synodus specialists. Our discussion will center on delving into your project’s objectives to recommend the most suitable feature set, architectural layout, and technology stack for your tokenized asset solution. The key areas of focus during our interaction will encompass cost efficiency, security measures, and compliance. Furthermore, you will be furnished with a comprehensive tokenomics concept and an implementation roadmap. 

Our team swiftly develops tokenized asset solutions with rigorous quality control measures. We seamlessly integrate the software with your current systems and provide comprehensive asset token management and user training materials. As pioneers in blockchain innovation, we are fully prepared to help you capitalize on the potential of the asset tokenization industry.

A must-read case study of real estate by Synodus  

Real estate is a massive industry worth hundreds of trillions, but individual investments have traditionally been inaccessible to most investors due to high minimums. Asset tokenization allows properties to be divided into shares that can be traded digitally on a blockchain. 

Here is a case study on real estate asset tokenization that Synodus has undertaken and achieved fruitful results.

• Problem: Our customer was looking for a partner with experience with blockchain technology and Vietnamese regulations. 
• How we collaborate: We approach real estate tokenization with three key components: 
  • Fractionalization and Democratization: Lowering entry barriers for individual investors. 
  • Transparency & Automation: Automating transactional features for efficiency and security.  
  • Personalization & Adaptability: Allowing investors to customize their preferences. Our agile approach, extensive research, and strong technological infrastructure using smart contracts have made this possible. 
• Our product: The MVP that we have worked on complied with intricate legislation and industry norms. It is a feature-rich bundle that is intended to appeal to a wide range of customers. 
• Results: The reputation of our customer in Vietnam has grown because to this MVP. Visionary seed investors and prominent figures in the Vietnamese real estate industry have come to appreciate the tokenization platform because it offers financial stability and drastically lowers transaction costs. They promised a bright future ahead, seeing its enormous potential and were willing to promote its growth.

Conclusion

The decision between working with an asset tokenization company or an asset tokenization platform is a critical one with the potential to significantly impact your organization within the development of asset tokenization market. By conducting a thorough assessment of your requirements, evaluating available options, and arriving at an informed decision, you can effectively harness this disruptive financial technology, positioning your business for sustained success.

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