TLDR: Real World Asset Tokenization (RWA) is exploding globally. Most crypto and retail investors still cannot access these assets as they are restricted to accredited and institutional investors. IX Swap is built differently, offering RWA to ALL investors big and small, and $IXS is the native platform token powering our ecosystem. We make investing in RWAs as easy and simple as buying crypto.
The world of private assets has long been an exclusive realm accessible only to accredited investors, leaving retail investors on the sidelines. In this blog piece, we'll delve into why IX Swap stands out as a pioneer in democratizing access to private assets and explore the reasons behind the traditional preference for accredited investors on most platforms.
Chart of RWA Platforms
Accredited Investors
Traditionally, investment platforms have limited access to private assets for a specific reason - the requirement for investors to be accredited. Accredited investors are individuals or entities that meet certain income and net worth criteria, as defined by regulatory bodies. This exclusive designation created a defining line between private assets and retail investors. However, platforms that cater to accredited investors allow a more secure environment albeit, limiting marketing reach to retail investors, preventing them from participating in lucrative investment opportunities.
Retail Investors
On the other hand, with the onset of blockchain technology—primarily, tokenization. Decentralized finance (DeFi) has seen an explosion of growth from retail investors. Retail participation has been, for the most part, enabled because the accessibility of these previously private assets has been made available on real-world asset platforms.
Real-World Asset Platforms
Bridging the gap between traditional finance (TradFi) and decentralized finance (DeFi), real-world asset platforms connect these two contrasting markets. Although tokenization has allowed for the participation of retail markets. There still seems to be a lack of this investment opportunity across the RWA space.
Similarly, we also find that a lot of RWA platforms poise themselves as able to cater to retail investors, even marketing themselves as so. But the truth is, there are many obstacles and roadblocks before your everyday investor can participate on these platforms.
Some of these may come in the form of extra KYC procedures; asking for proof of income documents, and the like. We also notice that other RWA platforms that follow the same route often have higher entry tickets—although lower than accredited investor entry barriers. With that being said, these still disprove the concept of decentralization altogether. Missing out on the point of true convergence between TradFi and DeFi landscapes.
Why IX Swap is Different:
Democratizing Access
- One of the key features that sets IX Swap apart is its use of tokenization technology. This process involves representing ownership of assets as digital tokens on a blockchain. Through this technology, IX Swap can fractionalize assets, making it possible for retail investors to buy and trade small portions of high-value assets—for as low as $1!
Easy KYC Process
- With IX Swap, it’s easy! Investors just need to go through our Anti-Money Laundering (AML)/Know-Your-Customer (KYC) process—the easiest KYC process there is out there. With a simple photo/selfie along with your ID, you have now unlocked investment opportunities typically inaccessible before.
Retail Licensed Platform
- But the real benefit that IX Swap brings to the RWA space is through the acquisition of our Digital Assets and Registered Exchanges (DARE license). With the advent of our DARE license, IX Swap enables retail investors to participate in these previously private assets. In short, this license allows IX Swap to take on any retail investor, globally!
In essence, the RWA space is going to see a seismic shift in terms of new players and investors hopping into the space. Although we’re seeing more platforms delve into the retail space, IX Swap still cements its position as the leader in retail accessibility for tokenized real-world assets.