8 benefits of tokenization for institutions

⚡Tokenization has the potential to reach Billions of users and Citi Group just unveiled a "Token Services" offer for its institutional clients.

That’s a good opportunity to talk about its benefits for institutions #ELI5!

  1. 24/7 Market Access: The blockchain works 24/7 so tokenized assets can be traded around the clock, eliminating the constraints of traditional market hours.
  1. Programmability & Automation: Tokenized assets can be embedded with smart contracts, allowing for programmable and automated actions based on predefined criteria.
  1. Fractionalization: Thanks to tokenization, assets can be divided into smaller, tradable units enhancing their liquidity.
  1. Accessibility: Fractionalization allows multiple parties to hold a stake in a single asset. This democratizes access to certain asset classes which were traditionally only available to wealthy investors.
  1. Enhanced Security: The immutability of the blockchain (or DLT) reduce the risk of fraud, counterfeit or money laundering.
  1. Reduced Middlemen: P2P transactions on the blockchain (or DLT) reduce the number of intermediaries required for settlements.
  1. Faster Cross-Border Transactions: Tokenized asset transactions can be settled in real-time or within minutes as they require less intermediaries.
  1. Reduced Transaction Costs: By eliminating intermediaries and streamlining processes, tokenization leads to reduced transaction fees and costs.

The future looks bright ☀️



Web3 agency helping crypto projects with organic content strategy and production (educational & marketing) from short form social media posts, newsletters to explainer videos.

Want to discuss ?

📧 diane@almazemedia.com

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