Blockchain technology is at the forefront. Blockchain’s transparency, security and cost efficiency have helped many industries such as supply chains and payments take the next quantum leap.
The $360 Trillions have seen little interest.1Real-World Assets market, including intellectual property, commodities and other assets.
These marketplaces are scattered and full of frictions, which results in a lack of liquidity for both investors and asset owners.
Blockchain platforms were able to offer promising options for asset tokenization, recognizing the market potential. RWA can easily be transformed into digital tokens using smart contracts and Blockchain technology. The result is greater exposure and liquidity.
1Real World Asset Value is $256T for 2018, with 5% annual growth to 2025. (Futurism Article based on Credit Suisse numbers)
Real World Assets – Bringing Real World Assets to Life
Let’s pick an example of commodities. A McKinsey report shows that every inch, bar, or barrel of gold has a total value of $510+ trillion by 2021. Only a small fraction of these assets can be considered liquid.
RWA needs liquidity to function. This is similar to the way companies raise large amounts of cash when they offer an IPO. Blockchain allows assets to be represented in tokens, also known as asset-backed tokens. These tokens can then easily be traded on an open market. Transacting at lower prices is possible for investors who can bypass traditional brokers.
Blockchain also guarantees transparency and the provability tokens on distributed ledgers, which is very helpful in market discovery as well as price discovery. Even on the regulatory front, companies won’t have to face any scrutiny when issuing tokens backed by RWA, be it tangible or intangible.
As a result, the barriers of entry and the “liquidity premium” are significantly lowered. This seems to be a win-win situation for all sides.
Finance Real Assets
It is not enough to convert illiquid assets into liquid. To make sure that an enterprise can efficiently utilize its assets in order to improve working capital, it must also get accurate valuations. When someone uses intellectual property such as patents or trademarks for collateral, this is more critical.
But the problem with valuing RWA is there isn’t enough data or financial history. You have to make many assumptions about the future cash flows, growth, and other factors. It is therefore necessary to have a reliable value estimator in order to bridge the funding gap for RWA. This opportunity is being seized by the markets, but very few financial institutions know how to do it.
Ovenue and deep tech platforms are using blockchain and artificial intelligence (AI), and machine-learning (ML) to provide innovative solutions. Ovenue offers a complete set of financial products that can extract the maximum value from RWAs, including legal and valuation frameworks and asset tokenization. Ovenue’s model is easy to understand; value, tokenize and monetize.
The majority of RWA is currently not monetizable. It can take weeks or even months with multiple parties.
Ovenue allows these functions to be performed in a seamless manner using state-of-the art technology. Now asset valuation and tokenization take only minutes!
Ovenue has over $80M worth of RWA under its management. Ovenue provides avenues to asset owners for capital raising and diversification.
Ovenue uses cutting-edge technologies to use industry-standard techniques like Relief from Royalty, to maximize the RWA potential. Currently, the diverse asset pool on Ovenue features fashion brands, inventory for e-commerce platforms, medical & cleantech patents, copyright and franchising agreements and prime real estate.
The Asset-backed Tokens are a type of non-fungible tokens. They can be used to represent different utilities or opportunities.
The asset owner could, for example, obtain non-dilutive financing by using asset-backed tokens in NFT format as collateral.
Ovenue makes smart contracts that allow you to customize the terms of your deal using different financial instruments. There are many options.
Ovenue tokens are not securities, but asset-backed tokens. These tokens are NFTs. They’re a digital identifier which cannot be substituted or subdivided. It is stored in a blockchain and used to verify ownership and authenticity.
New Class of Alternative Investments
Ovenue can offset the deterioration of a company’s balance sheet by tokenizing RWA and leveraging technology. The Ovenue platform creates private markets and accurately values assets. It allows assets which were just sitting around to be used as growth vehicles. Many companies have unvalued or undeclared assets. Your RWA can be monetized by Ovenue.
Asset tokenization of RWAs creates new alternative investment opportunities in the financial market. Investors now have the ability to tap into many high-growth asset types and diversify their portfolios. Blockchain solutions are a great way to revolutionize finance, and they can be made more accessible for everyone with institutional participation.