- The token holder’s rights, and legal responsibilities can be embedded within the token, as well as a record of ownership.
- Tokenized assets allow for the automated transfer of ownership while maintaining compliance as well as reduced complexity and cost. Combining this offers a definite improvement in liquidity.
- Tokenization has opened investing to a much broader audience thanks to the lower minimum investments and lower investment periods. The divisibility of tokens allows for extremely small percentages of assets to be purchased at a time if wanted.
Though the benefits are many, there are definitely still barriers and challenges ahead before this becomes widely used. The main challenge falls under the regulation, as seen as a challenge with many other emerging technologies. As blockchain is still relatively new, it is still quite unregulated. Depending on the regulation laws that are to be put in place, many of the benefits in terms of liquidity and accessibility could be undermined.