Issuing tokens to represent ownership of an asset and selling them to investors can generate income for the issuer. Tokens can be sold at a premium to the value of the underlying asset, allowing a profit to be made.
Tokenization platforms charge transaction fees when trading digital tokens representing assets. These fees can range from a few basis points to a percentage of the transaction value, generating revenue for the platform operator.
Asset tokenization can create investment opportunities for investors who may not have been able to invest in the underlying asset due to high costs and entry barriers. Tokenization can also provide fractional ownership opportunities, allowing investors to diversify their portfolios with less of their investments.
Tokenization of assets can increase liquidity by making it easier to buy and sell fractional shares of an asset. This liquidity can lead to more frequent transactions and higher trading volumes, generating revenue for token issuers and trading platforms.
Smart contracts can be used to automate the process of buying, selling and managing digital tokens representing assets. Developers can create and sell smart contracts to issuers and trading platforms, earning revenue from license fees.
Tokenization is a complex process, and many companies may need consulting services to navigate the regulatory, legal and technical requirements. Consulting firms can offer services to help issuers and investors navigate the tokenization process, generating revenue from consulting fees.