An Introduction to Real World Assets

‍WHAT ARE THEY? WHAT ARE THE BENEFITS?

The tokenisation of Real World Assets is creating a paradigm-shift that transforms the way that we have traditionally approached the markets. The market cap of commodity-backed tokens has reached over 1 billion dollars in 2024. Boston Consulting Group have projected that by 2030 the estimated market value of tokenisable assets will reach 16.1 trillion dollars. BCG have also projected that this will create annual savings of 20 billion dollars in global clearing and settlement costs.

WHY TOKENISE ASSETS?

Tokenisation is the process of converting Real World Assets into digital tokens on a blockchain. These tokens represent ownership or rights to the underlying assets, bringing accessibility and transparency to traditional assets. This allows assets to be divided, purchased, sold, or exchanged on our digital platform without needing to transfer the physical asset itself.

Blockchain, the underlying technology behind tokenisation, ensures security in the investment process. To tokenise an asset, it is documented on a blockchain – a decentralised and unalterable ledger. This guarantees secure, transparent and incorruptible ownership and a fully traceable history of all transactions associated with an asset.

Once recorded on the blockchain, tokenised assets can be traded on different platforms, enabling increased liquidity and accessibility. This approach grants multiple investors the opportunity to own a ‘share’ of assets when owning the whole could be out of reach. Through the trade of tokens, investors are selling or possessing a digital proxy of a share in an asset. Instead of physically owning an entire object or asset, investors can own a fraction of it represented by their percentage share in digital tokens. This fractional ownership democratises access to exclusive and valuable assets that might otherwise have been unavailable to them and unlocks new and viable revenue streams for the owner.

ADEX leverages blockchain to record and verify every RWA transaction. This not only enhances trust but also, importantly, eliminates intermediaries, reducing heavy traditional legacy costs and increasing efficiency. The main drawback of traditional models is that there are significant administrative costs, such as the necessity to account for storage and the high fees asked by auctioneers and brokers. Selling a rare asset also may not always achieve its real value due to market volatility and illiquidity.

Tokenisation allows these assets to be traded on digital platforms, providing heightened liquidity for owners to take advantage of their investments quickly and 24/7. ADEX empowers owners by offering them liquidity and versatility in the trade of a previously illiquid asset class.

THE BENEFITS OF TOKENISATION

Accessibility: Tokenisation eliminates high entry barriers, allowing investors of all tiers to engage in the RWA markets.

Liquidity: Fractional ownership enhances liquidity, enabling investors to buy and sell their tokens easily on the ADEX platform.

Diversification: Investors can diversify their portfolios by owning fractions of multiple premium assets, spreading risk and maximising potential returns. Tokenising an asset can enable anyone to invest in and reap the rewards of the appreciation of value. This not only results in a more inclusive market but also exponentially broadens the potential markets for asset owners.

Transparency: Every transaction is immutably recorded on the blockchain, providing real-time transparency and a secure investment environment.

Improved Verification and Authenticity: Blockchain can be employed to confirm the authenticity of any asset, offering immediately traceable histories that verify provenance and ownership.

Collaboration: ADEX is already in collaborative talks with companies representative of multiple industries, merging knowledge and tradition with our digital innovation. These alliances will also benefit investors and collectors as we bring first-to-market offerings for rare and desirable assets straight to our clients and holders.

Through our decentralised exchange, ADEX will offer a retail-friendly, user-centric platform where investors can seamlessly engage with fractionalised assets. Through our partnership with a digital bank (TBA), all assets will be heavily audited via their compliance department. ADEX ensures a safe guide into the world of tokenised investments, bringing the world of RWAs to every investor and offering new and fluid financial options for asset owners.

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