Tokenization

Unleash the full potential of a tokenized ecosystem

Tokenization creates a bridge between real-world assets and their trading, storage and transfer in a digital world via blockchain technology.

Tokenization is the process of representing ownership with digital tokens on a blockchain. A security token is a representation of the ownership information of the underlying investment product, recorded on a blockchain. 

Digital securities are stocks, bonds, and other financial securities that are digitized. Besides financial instruments, real-world assets, from real estate, commodities, sustainability certificates to art can also be tokenized.

Tokenization presents a solution to asset owners to unlock the value of their assets by offering tokens to investors.

Benefits of tokenization

Immutability

Ownership or transaction record of a token is irreversible and unchangeable on the blockchain.

Operational Efficiency

Improved efficiency of administrative processes.

Assets Fractionality

Sellers / asset owners can easily find counterparties to perform a transaction and businesses can assess greater pool of investors, not bound by geographical location.

Single source of truth

Counterparties can share data and interact with the same digital representation of the asset, simplifying the process through smart contracts.

Tokenization

Primary market issuance platform

Digital securitization of assets on the blockchain provides greater access to capital, increases efficiency of capital raising, and automates corporate housekeeping processes such as maintenance of share registry and execution of corporate actions.

Secondary market trading venue

A regulated trading venue for tokenized assets provides investors with access to unique investment opportunities payment and settlement are instant and direct.

Major advantages of tokenization are:

1. The token cannot be reversed back to the original value.
2. The token maintains the same structure and data type as the original value.
3. Tokenization and encryption are distinct processes and technologies, even though they are closely related. If the token is an encrypted value it’s encryption, not tokenization.

For Investors

Open yourself to a wider range of assets by starting your investing journey in digital securities.

Easily manage your investment portfolio with

  • instantaneous views of your trades and balances
  • both real-time and historical data
  • seamless all-in-one dashboard
  • secured institutional grade platform
  • swift settlement in seconds powered by blockchain

Digital Securities

Seize the growing blockchain-powered opportunity.

SDAX’s services for tokenization 

 

Consultation

Identifies issuance needs for a customized listing strategy.

Structuring

Advises issuers on optimum structures for tokenization, seeks approval. Securitize / tokenize assets.

Listing

Upon approval, the issuer’s digital security is listed on the Exchange, traded by investors.

Custody

Fully-licensed and compliant asset custody services to safeguard issuer’s assets.

FAQ

  • Blockchain technology is a form of electronic ledger that records information and transactions of digital assets in blocks of data that are attached together in an orderly and secured manner using complex cryptographic hashing. 
  • Before being added to the electronic ledger, each new asset transaction is verified by a network of computers, or nodes. 
  • A consensus decision must be made by the network to validate the transaction.
  • Once a transaction is consensus-verified, it is added to a block of data, and the blocks are attached to each other in a chain.
  • With every new block appended, the blockchain becomes a growing database of time-stamped digital asset transactions. 
  • Blockchain technology is a form of electronic ledger that records information and transactions of digital assets in blocks of data that are attached together in an orderly and secured manner using complex cryptographic hashing. 
  • Before being added to the electronic ledger, each new asset transaction is verified by a network of computers, or nodes. 
  • A consensus decision must be made by the network to validate the transaction.
  • Once a transaction is consensus-verified, it is added to a block of data, and the blocks are attached to each other in a chain.
  • With every new block appended, the blockchain becomes a growing database of time-stamped digital asset transactions. 
  • A unique computer-generated code, or ‘hash’ is contained in every new block added to the blockchain.
  • Besides its own unique ‘hash’, each block also holds the ‘hash’ of the previous block it is linked to. These matching ‘hashes’ validate that the chain is correctly ordered and untampered. 
  • Any attempt to alter the data of a block would automatically create a new code for that block, which would invalidate its match with the previous block, thus breaking the chain. 

Operating on an enterprise-grade blockchain, SDAX provides a robust and secured end-to-end market infrastructure for asset tokenization.

Download our application

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