Since Bitcoin’s launch over a decade ago, blockchain's use cases have grown exponentially. One of its most ambitious and recent applications is the tokenization of assets. Referred to as the process of creating a digital representation of any asset by issuing a token, this concept possesses the most potential.
According to several surveys, over 97% of institutional investors think that tokenization will revolutionize the asset management market. It will pioneer the creation of new markets that previously were isolated, bringing them under a single settlement layer—blockchain technology. Besides its obvious disruptive nature, tokenization has proven to be an extremely beneficial innovation.
Benefits of Tokenization
Tokenization lowers costs. It enhances processes and eliminates the need for third parties. The traditional real estate and car rental markets are riddled with intermediaries in the form of agents who earn a commission. Tokenization dispels these agents, reducing the purchasing cost for both owners and buyers alike.
Blockchain's transparent nature as an immutable and permanent technology adds new layers of transparency. Each transaction is recorded on the blockchain network and is accessible to all. This ensures that ownership details are not only transparent but immutable and permanent. The additional levels of transparency and access tokenization bring to the financial market reduce risks as every change in ownership or usage is visible to everyone. Blockchain’s immutability further guarantees that any information added cannot be altered.
The Tokenization Boom
According to reports, the global tokenization market was valued at $2.3 billion in 2021, however, experts speculate it could exceed the $30 trillion mark by 2034. The growth of this industry is the result of the mass implementation of tokenization across various industries. Since 2017, tokenization has been tested across multiple asset classes and, according to reports, over $50 billion worth of bonds and stock have been tokenized by big finance companies.
Tokenization can disrupt almost every market, and while application in some will take longer than in others, it is a potential-replete concept that will revolutionize the world as we know it.
A Practical Application of Tokenization in the Auto Rental Industry
Besides the financial market, tokenization has entered the car rental service industry, with CryptoAutos pioneering the movement. It is the world’s first automotive marketplace that enables car purchases and rentals using cryptocurrencies.
CryptoAutos is pioneering real-world assets in the automobile industry via its RWA-backed rental fleet in Dubai. It creates an investment opportunity that allows to potentially earn yield in USDT from both the rental and sale of luxury cars via their native $AUTOS token. According to the platform, investors will earn from an annual pool of $15 million, making it a super lucrative real-world asset-backed investment. Through this platform, users can invest, albeit in fractions, in luxury vehicles, receive potential rental-based earnings, and learn first-hand the appreciation and resale value of these exotic cars.
CryptoAutos combines the efficiency of blockchain technology with real-world investment streams to guarantee that asset holders can take part in high-yield, stable investment models. This platform will open the $100+ billion rental market for crypto adoption.
Dubai’s progressive crypto regulations make it a perfect location for RWA and tokenization innovation, and that is why the CryptoAutos RWA rental fleet is based there. It is gradually becoming the hub for blockchain adoption with a plethora of luxury assets currently being tokenized.
CryptoAutos is bridging the gap between Web2 and Web3, pioneering a world where users can seamlessly make payments for goods and services using cryptocurrencies. It has given $BNB, $TON, $HBAR, $SUI, $SOL, and $NEAR more real-world utility. CryptoAutos has also partnered with some of the most reputable luxury car brands like Harley Davidson, Ducati, McLaren, Rebel Cars, and Masonry.
