AssetFi an innovative Defi project built on the Binance Smart Chain has announced that it would be raising funds through an IDO (Initial DEX Offering).
Simplified for the layman, The Decentralized Finance (DeFi) or Open Finance Movement makes it easy to make money and payments universally accessible to anyone, no matter where they are in the world. Creating a global, open alternative to every financial service used today — savings, loans, trading, insurance and more — and making it accessible to everyone in the world with a smartphone and internet connection.
AssetFi (Assetfi.io) aims to tokenize valuable real-life assets like real estate property, painting, precious metal and company shares on the Blockchain with the AFI token being utility token to stake, govern, secure and transact on the AssetFi network.
Due to the capability of tokenization to offer increased liquidity, reduced costs and faster settlement, it continues to achieve momentum and investments are being made across different industries.
Benefits of ASSET.Finance
- No territorial barriers
An investor can invest in a property located in any part of the world without visiting there physically, investment becomes secure, fast and easy with asset tokenization on the blockchain.
- Elimination of middlemen
Trading of assets usually takes days to months to achieve a settlement. It involves external entities to validate the documentation of transactions and investor’s eligibility, which adds extra costs to the process. But tokenization removes the need for intermediaries with Blockchain’s ability to provide immutability and transparency.
- Fractional ownership
When assets are digitized, they become highly divisible. Thus, investors can invest in small percentages of tokenized assets. For example, you can buy a 10% share of a tokenized real estate property. It dramatically removes the barriers for billions of investors to enter the market.
- Broader investor base
Traditionally, the trading of real-world assets has a restriction on the level of fractionalization. But asset tokenization eliminates the limitation by making it possible to sell or buy tokens that represent fractions of ownership. It results in a broader investor base to participate in the investment process. Tokenization would open opportunities for a new set of investors.
- Improved liquidity
Bringing the investment process on the blockchain provides a low friction environment. Asset tokenization enables the automated transfer of ownership while ensuring compliance. With reduced complexity and costs, tokenized assets present the possibility to invest with fiat money and P2P trading on regulated exchanges, which can improve liquidity.
What can be tokenized on AssetFi?
From exotic assets like artwork, sports teams, and racehorses to traditional assets like bonds, real estate, venture capital funds and commodities, almost every asset class can be tokenized.
– Real estate
– Private equity shares
– Physical goods
AssetFi facilitates the establishment of an ecosystem that will garner participation across all areas of finance including, but not limited to, asset originators, fund managers, servicers and banks. According to information from a company representative, Assetfi would be holding an IDO in July which will be followed by the launch and trading of the AFI Governance token.