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Imagine owning a piece of the world's most iconic buildings, from the Sydney Opera House in Australia to the Guggenheim Museum in the US, or even the rights to your favorite song or movie, all through a few clicks on your smartphone. This isn't science fiction—it's the transformative power of real-world asset (RWA) tokenization. Recently, Edwin Mata, CEO and co-founder of Brickken, shed light on this thriving field during a Cointelegraph AMA, revealing both its immense potential and the significant challenges that it faces.
Tokenization of real-world assets is revolutionizing how we invest and manage assets. By converting physical assets into digital tokens on the blockchain, this process allows for fractional ownership, enhanced liquidity, and greater accessibility to investment opportunities. Edwin explains, “We aim to digitize and tokenize assets seamlessly, providing a solution for any company to enter the digital asset world without worrying about technical complexities.”
Brickken has led the way in this field, successfully tokenizing over $230 million worth of assets in 14 countries. This milestone highlights the platform's adeptness at handling various regulatory environments and providing businesses with an intuitive solution for asset digitization.
Regulatory uncertainty is one of the biggest challenges in tokenization. Each country has its own set of laws governing securities and digital assets, making compliance a complex and often daunting task. Edwin highlights, “Regulatory-wise, it's a big hurdle because there's a lot of uncertainty and ignorance in how you can digitize an asset. The division of markets—private and public—each with its own regulations, adds to this complexity.”
Brickken addresses these challenges by positioning itself as a software provider, enabling issuers to comply with local regulations. This approach simplifies the process, ensuring that regulatory requirements are met through the platform, while other specific tasks are managed by the issuers.
Brickken’s digital asset platform offers a simplified solution for businesses to tokenize their assets, effectively bridging the gap between traditional and digital finance. By providing a comprehensive solution, Brickken allows issuers to focus on their core business activities while ensuring regulatory compliance. Edwin elaborates, “We provide a seamless layer where most of the regulation is already complied with. The issuer has to comply with jurisdiction-specific requirements, but we make the process as simple as possible.”
The platform’s adaptability is crucial, given the diverse regulatory environments across different countries. For instance, while the United States has stringent securities regulations, other regions may have more flexible frameworks, allowing for varied approaches to tokenization.
Navigating the legal and technical aspects of tokenization requires expertise and collaboration. Brickken has established a network of law firms worldwide, providing issuers with access to localized legal support. This network ensures that businesses can meet all necessary legal requirements, regardless of their geographical location.
Edwin emphasizes the value of this collaborative approach, stating, “We have agreements with different law firms in various countries. If a client wants to issue a token in India, we connect them with a law firm there, ensuring they get the necessary legal support.”
While real estate remains a dominant sector for tokenization, accounting for about 70% of Brickken’s portfolio, the platform’s versatility extends to various other industries. From biotech firms to franchise businesses, Brickken’s technology enables diverse applications of tokenization, making it a viable solution for multiple asset types.
Consider the case of a biotech company that recently raised significant funds through the platform. “Today, we had a successful raise from one of our biotech clients. An asset is an asset for us, whether it’s real estate, biotech, or any other sector. The technology we provide allows for seamless capitalization and asset management,” says Mata.
Looking ahead, the RWA landscape promises significant growth and innovation. As more institutions recognize the benefits of blockchain technology, the adoption of digital assets is expected to accelerate. Edwin Mata envisions a future where tokenized markets become commonplace, offering businesses an efficient and secure way to raise capital and manage assets.
“The future of the economy is all tokenized,” Mata asserts. “In 10 years, it will be common for companies to decide whether to go for an offline or online IPO in a tokenized market. The efficiency and reduced costs of tokenization will drive this shift.”
This AMA with our CEO Edwin M. hosted by Cointelegraph gave us valuable insights into the challenges and opportunities within the field of digital assets. Brickken’s innovative approach and comprehensive platform address both the legal and technical hurdles, setting the stage for broader adoption and integration of digital assets into the global economy for businesses and investors.
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