5 Tokenization Companies Helping Bring Physical Assets into The Metaverse
Everything’s going digital these days — even physical assets. We’re not talking about staking out the virtual equivalent of real estate in a metaverse somewhere and hoping the land will appreciate in value. We’re talking about brands and organizations finding effective and profitable ways to monetize the real, physical assets they hold using the blockchain. It’s a new way of doing business, but it’s already a potent one. If you want to get started right, your best bet will be to follow the example of or partner up with dedicated asset tokenization companies.
Not sure who we mean by that? We’ve got you. This article will introduce five of the best companies helping others bring new value and liquidity to the physical assets they already own.
What Do Asset Tokenization Companies Do?
Tokenization service providers take a physical asset and transform it into a digital one. They do this by securely storing the asset in question, generating a physical-backed NFT that demonstrates proof of ownership, and then facilitating the exchange of said NFT on web3 marketplaces. This process is often referred to as Tokenization as a Service, or TaaS.
Keep in mind that this is a simplification; in truth, there’s more to asset tokenization than just companies making NFTs. Several additional factors go into the process, including:
- Appraising the value of a physical asset and reflecting its true value in its token price. In many cases, the provenance of an item (e.g. a guitar played during a concert by a popular rock band) can add tremendous value to it.
- Securing the item in a secured facility.
- Moving an item to the Blockchain (aka minting) by digitizing the physical asset.
- Implementing smart contracts into tokenized assets to provide added functionality such as revenue share.
- Facilitating initial offerings and subsequent listings on secondary markets that are globally accessible 24/7.
- Sharing a small fee with the creator once an item is being sold on secondary markets
- Performing all the above tasks while maintaining the design and messaging of the original asset owner.
- Allowing a NFT holder to burn their NFT and redeem it for the physical asset.
- Adhering to all relevant laws and tax regulations.
Tokenization Companies Exploring New Physical-Backed NFT Possibilities
While companies are springing up every day to make their own blockchain-powered value proposition, these five asset tokenization companies have demonstrated they have the experience and tech to make it happen at scale.
Dibbs started with the idea that NFTs can be much more than digital trading cards — in fact, they can be a better way to buy and sell physical collectibles.
Dibbs works with businesses as an all-in-one tokenization service provider, bringing brands to the blockchain in a practical way with the peace of mind that can only come from collaborating with an experienced partner. Working with Dibbs can open up all-new income streams from your existing assets, and we’re eager to use our solution to open up new possibilities for your brand.
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This Luxembourg-based tokenization vendor currently manages tokenized assets from customers across Europe, with a combined value of over $28 billion. Tokeny has earned multiple rewards for its impressive services and offers convenient resources to tokenize a wide range of high-value assets, including securities and real estate.
One of the strongest benefits of using Tokeny to handle your assets is having access to its numerous partners for financial or accounting advice. It has partnerships with companies that can provide identity protection if you plan to implement KYC, as well as liquidity providers to help list your assets on secondary markets.
- Real estate
- Private equity
- Investment funds
- Debt products
Based in Miami, Florida, BetaBlocks is an enticing platform for turning unlikely assets — including ephemeral ones related to intellectual property rights — into revenue-generating tokens. It also provides an appealing way to take any digital art, tokenize it, and present it on a personalized storefront. Listing your art outside of a saturated platform like OpenSea can set you apart from imitators or competitors.
BetaBlocks’ innovative approach to asset generation can enable you to turn rights for media appearances or endorsements into a portfolio asset. Best of all, the underlying smart contract functionality can reduce the legal red tape associated with any negotiations surrounding sponsorships or licensing rights — it’s as easy as trading or staking the NFT.
- Digital art, music, and videos
- eSports teams
- Media rights, endorsements, and sponsorships
- Real estate
Mattereum’s platform is specialized to help you find the true value of your physical assets and facilitate their trade without the risk of fraudulent behavior associated with more traditional online marketplaces. It accomplishes this through asset passports, which combine physical-backed NFTs and smart contracts to explicitly define and value one-of-a-kind assets.
Using Matterreum as a tokenization service provider is a good idea if you hold rare collector’s items in niche markets, or assets that require one or more experts to properly appraise. By generating an asset passport through Mattereum, you can still host your physical-backed NFT on a popular marketplace like OpenSea. Taking this extra step makes it much simpler to prove the value of an object and settle any legal disputes thanks to its unique implementation of Ricardian contacts.
- Real estate
The biggest draw to tokenizing your physical assets with Otis is the cultural impact. This company’s mission statement is to provide digital investors with the ability to own fractionalized pieces of collectibles that have inherent cultural value. In fact, Otis will regularly host pop-up galleries showcasing tokenized assets on its platform, further contributing to the culture around web3-inspired art.
Aside from digitally native assets like CryptoPunks and other digital art pieces, Otis also hosts physical assets such as collectible cards, sneakers, video games, and comics. By encouraging users to invest in fractions of these assets, Otis appeals to speculators looking to diversify their portfolio. However, users are still able to purchase complete physical-backed NFTs and redeem them to receive the assets they now own.
- Digital art
- Video games
- Miscellaneous physical collectibles worth more than $5,000
Whatever kind of assets you’re looking to find new ways to monetize, finding a partner with both the technology and expertise to capitalize on this emerging market can make all the difference. Reach out to Dibbs today and we’ll be happy to tell you more about what we can do to bring liquidity and profitability to your existing resources.