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While most critics dispute the potential of real-world assets as the future of tokenization, statistics point to a significant increase in market capitalization. Besides being tokenized representations of various classes of assets, RWAs possess the potential to unlock trillions of dollars in value across industries.
Consider the concept of tokenization in the real estate space. While most think that it doesn’t completely solve the liquidity problem, they overlook the mass improvements in the areas of transaction efficiency, accessibility, and elimination of intermediaries. Tokenization does not bypass existing legal frameworks, rather it provides a more comprehensive and streamlined model of ownership. It is poised to unlock a plethora of opportunities in the financial market.
With a simple premise—anything of value can be tokenized—tokenization is emerging as the fastest-growing segment of the digital economy.
How Asset Tokenization Increases Liquidity and Accessibility
One of the standout benefits of tokenization is increased liquidity and accessibility. While most critics, as mentioned earlier, argue that this innovation does not improve liquidity, it does. In several ways. Illiquid assets such as cars, real estate, or even art can be hard to transact and transport. Tokenization helps to facilitate transactions, introducing liquidity in the process.
Another way tokenization increases liquidity is by fragmentation. Tokenization enables the fragmentation of all kinds of assets, an infeasible aspect of traditional finance. Users can own fragments or percentages of an asset—cars, real estate, art, etc. Once these assets are fragmentized, liquidity increases because more investors, who ordinarily couldn’t afford the traditional instruments, can seamlessly afford portions of them. In terms of accessibility, blockchain is a super accessible and permanent technology that opens markets to a larger audience. As liquidity is increased, more investors can easily enter and exit positions without big slippage.
Tokenization widens access to the kinds of assets that are available to investors, opening opportunities for them to actively buy assets that were previously inaccessible. It lowers the entry barrier, making financial systems more efficient. By selling fractions of real estate, cars, and art, it expands the investor base—opening the market to a whole new audience of crypto enthusiasts.
Introducing a Real-world Example of Tokenization in the Automobile Industry
We’ve recently been investigating CryptoAutos; the premier crypto automotive marketplace. It is designed to enable investors to buy and own luxury cars via crypto payments, as well as enabling $AUTOS holders to earn yield from a tokenized fleet of rental cars. It is actively bridging the gap between Web2 and Web3 by offering real-world utility and instant crypto payments for goods and services. As one of the world’s most powerful crypto-to-fiat off-ramps, CryptoAutos has integrated $TON, $BNB, $HBAR, $NEAR, $FTM, $CAH, etc into their marketplace. It has also partnered with luxury car brands such as McLaren, Ducati, Masonry, Rebel Cars, etc.
How Does CryptoAutos Work?
CryptoAutos has created a Dubai-based rental fleet that allows users to earn yields in the form of USDT from the rental of luxury cars. They are estimating a $15 million annual revenue potential for the rental service, making it a highly lucrative investment opportunity backed by RWA.
On the CryptoAutos platform, users can;
Invest in fractional ownership of high-value exotic cars
Receive rental-based earnings
Learn about vehicle appreciation and resale value
CryptoAutos combines the unrivaled efficiency of blockchain technology with real-world investment streams to ensure that digital asset holders can engage in stable, high-yield investments. Since its launch, this automotive marketplace has grossed $60 million in crypto sales as well as 180k monthly website visits.
With RWAs emerging as one of the most promising aspects of the trillion-dollar crypto market with an estimated market cap of $30 trillion by 2034, it is one trend that will disrupt various industries. In addition to increasing liquidity and accessibility even to markets with less visibility, RWAs will reduce cost and improve efficiency on a global scale. CryptoAutos is pioneering this concept in the automobile industry, offering investors an opportunity to own vehicles and earn from luxury car rentals seamlessly.