What is tokenization?
Tokenization refers to the process of converting ownership or rights to real-world assets (RWAs) into digital tokens on a blockchain or distributed ledger. This transformation spans both tangible assets like real estate, art, and commodities, and intangible assets, such as intellectual property.
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By tokenizing these assets, we unlock a multitude of benefits, including transparency, security, and efficiency, streamlining ownership and transfer processes. However, the most significant advantage is the increased liquidity of traditionally illiquid assets. Tokenization creates a seamless method for buying, selling, and trading these assets, while enabling fractionalization—making it possible to divide ownership into smaller, tradable parts.
Fractionalization
One of the most compelling features of tokenization is fractionalization—the ability to divide an asset’s ownership into smaller fractions and distribute them to a larger pool of investors. Traditionally, access to high-value assets has been reserved for accredited investors or private entities. With tokenization, everyday investors can now purchase fractions of assets that were once out of reach, breaking down traditional financial barriers.
This democratization of investment increases the liquidity of RWA tokens, providing more opportunities for both investors and businesses.
To further understand this concept, let’s take a look at IX Swap’s token use case of the IXApe below.
IX Swap's IXApe
IXApe tokens represent a groundbreaking approach to NFT ownership, particularly centered around Howey Tez's Bored Ape #2371 NFT from the exclusive Bored Ape Yacht Club (BAYC). In a bold move to democratize ownership and distribute the economic interest tied to this high-value digital asset, Howey Tez tokenized the NFT into 5,000 IXAPE tokens. Each IXAPE token embodies a share of profits from the Bored Ape #2371 NFT, allowing a broader audience to participate in the lucrative world of this blue chip NFT.
By fractionalizing the Howey Tez NFTs, IX Swap can further enhance your security token’s liquidity. Enabling retail users to buy, sell, and trade fractals of your digital asset.
IXApe Token Use Case
Last November IX Swap launched the IXApe airdrop. A campaign where we provide dividend distribution based on the number of IXApe tokens the user was holding during the campaign period. And it is with much success that we’d like to announce that the campaign ended on a very positive note.
The IXApe token's price surged an astounding 1125% from its starting price to its all-time high, showcasing IX Swap’s commitment to solving the illiquidity issue for security tokens and real-world assets.
Liquidity pools play a crucial role in facilitating the exchange of assets on decentralized platforms. In the case of IXApe, the liquidity pool not only ensured smooth trading but also contributed significantly to the overall liquidity, increasing its value.
IX Swap: Empowering Businesses and Investors
The IXApe token is just one example of how IX Swap is reshaping the world of RWA tokenization. By facilitating fractional ownership of high-value assets, IX Swap enables retail investors to participate in these markets without requiring large capital investments. Additionally, businesses can access a global retail market, opening up new opportunities for growth and investment.
Whether you're a business or an individual investor, IX Swap’s platform is making tokenization and fractionalized ownership accessible to all.