Asset Tokenization

Asset tokenization in 7 steps

Step 1. Choosing an asset
The very first thing you need to do is to decide on what exactly you are going to tokenize. It is better to choose an asset that already has a significant market because you will know the price range and will be able to correctly set the prices for tokens. If your asset is not very popular and it is difficult to evaluate it yourself, you should request a valuation from an accounting or auditing company.

Step 2. Developing a business model and strategy
You also need to be clear about your future business model. To design it, you have to think about sources of income and financing details and decide where the client base will come from.

Step 3. Creating the platform
This stage is about how your idea is embodied in a mechanism that will work according to your business plan. Here you have the choice to either create the platform yourself (you need to have coding skills and be familiar with blockchain technology) or delegate this task to professional blockchain developers.

Step 4. Learning about regulations in your jurisdiction
This step can be relatively difficult as it is necessary to clearly understand the laws relating to digital assets and blockchain technology and strictly comply with them. It is best to contact an experienced legal advisor and ask for a professional consultation.

Step 5. Publishing a whitepaper
Next, you write and publish a whitepaper in which you briefly describe why your token has been created and how potential buyers can benefit from purchasing your asset-backed tokens. Include an analysis of your work and the conclusions that you came to when preparing your project.

Step 6. Attracting investors
After publishing the whitepaper and testing your new platform, you can start working on attracting potential investors. This is where your marketing skills come into play.

Step 7. Finishing work on the platform
With the financial backing of investors, you can continue to improve your platform and get it ready for production.

You now have a complete platform for exchanging real-world assets and turning them into tokens. But don’t stop there. No matter how ideal the platform may seem to you, it can always be improved.