Dibbs | NFT Blog

Choosing an Asset Tokenization Platform: How to Build Your Shortlist

Written by Jonathan Barbone | Jan 13, 2023 8:49:10 PM

Tokenization is an excellent way for IP owners, collectors, property owners, and businesses to monetize their most valuable assets. Unless you already have extensive experience creating and promoting your own physical-backed NFTs, you’ll be best served by finding a partner to help you issue tokens and manage investor communications. Most importantly, this tokenization platform must understand your asset’s monetary and cultural value as intimately as it understands the technological complexity of the blockchain.

To that end, let’s review the characteristics of tokenization platforms and how they serve property owners and investors across diverse markets.

Jump to a section…

What Is an Asset Tokenization Platform?

Common Characteristics of Tokenization Platforms

Unique Characteristics of Tokenization Platforms

Examples of Tokenization Platforms

Dibbs

Securitize

Tokeny

Polymath

What Is an Asset Tokenization Platform?

An asset tokenization platform is a new way for property owners to convert their assets into physically-backed NFTs. They are invaluable tools for finding investors, connecting with global markets, and monetizing items with low liquidity. Whether these companies trade in collectibles or real estate, they provide tokenization-as-a-service that lets customers mint, manage, and monetize NFTs from a trusted marketplace. Leading tokenization companies also provide asset insurance and vaulting services to secure and verify the physical counterparts of their tokens.

Common Characteristics of Tokenization Platforms

For all the variety in today’s asset tokenization platforms, most share a common set of characteristics that distinguish them from other blockchain companies. Any physical asset holder looking to produce tokens should consider the following features:

  • Tokenization: Each platform can mint and issue digital tokens representing assets on a distributed ledger. Each token represents some share of the asset’s value that can change over time based on demand, market interest, or other factors.
  • Token marketplace: Platforms provide a channel for asset holders to sell, trade, and distribute their tokens. Each listing may present the current value of tokens and details of its provenance.
  • Asset storage and security: Tokenization platforms operate on trust, which means they need to guarantee the condition and authenticity of physical assets. Most accomplish this by vaulting the item in a secure, environmentally-controlled location.

Unique Characteristics of Tokenization Platforms

While NFTs are often grouped as a single category for trading purposes, the actual tokens have specific use cases that reflect each asset. After all, if someone invests in a work of art and commercial real estate, they will need to manage them quite differently. For that reason, many tokenization platforms offer services unique to their specific field.

  • Digital utility: An NFT is essentially an authentication certificate for ownership of whatever its token represents, but some tokens can include encrypted digital bonuses. For example, a music NFT platform might feature playable albums or concert tickets. Alternatively, an art tokenization platform unlocks copies of physical artwork on a metaverse platform.
  • Community services: When IP holders sell tokens directly to fans, they’re not just selling ownership — they’re selling access to an exclusive community. Music NFT platforms that let investors discuss new releases or allow artists to engage with fans directly offer more perks than traditional streaming platforms.
  • Partial ownership: Platforms can fractionalize NFTs by dividing one token into multiple tradable units to help owners earn revenue while retaining some degree of ownership.

Examples of Tokenization Platforms

Tokenization may be a relatively new technology, but it’s already paved the way for multiple platforms that collectively trade billions of tokens daily. Here are some examples that focus on unique market segments.

Dibbs

Dibbs is a real-time, blockchain-enabled tokenized assets platform that specializes in the tokenization of whole and fractionalized rare collectibles. Founded in 2020 as a 24/7 marketplace for fractionalized sports cards, we’ve expanded our scope to help sellers authenticate, vault, and monetize all categories of physical assets. Dibbs’ partners have the ability to mint these tokens on any blockchain and sell them to a global audience on any of the major marketplaces, including OpenSea, Rarible, Nifty Gateway, and many others.

Our proven platform and tokenization experience means peace of mind for brands looking to tokenize their assets for the first time. Please fill out the form below if you’d like to learn more about what we can offer your business as you explore options for bringing your assets to the blockchain.

Securitize

Securitize is a digital asset securities firm that offers fundraising and investment opportunities. Its primary goal is to establish connections between companies that need to raise capital and shareholders who want unique investing options with high liquidity. To that end, its platform supports the issuing, managing, and trading of security tokens while providing tools for businesses to engage with their token shareholders.

Tokeny

Tokeny offers a range of peer-to-peer trading and investment management solutions, but it largely stands out as a white label tokenization platform. Tokeny facilitates investments in financial assets and real estate by offering custom digital marketplaces that comply with regulations in more than 180 jurisdictions. Businesses and asset holders can create branded asset listings that attract investors while issuing and managing their tokens from a centralized platform.

Polymath

Polymath is an open-source tokenization platform with modular features that help asset holders customize listings for their jurisdictions. It provides asset holders with tools for issuing regulated security tokens, optimizing yield strategies, and making offers directly to investors. On the technology front, Polymath’s Token Studio provides options for configuring unique security tokens within the ERC1400 standard that meets all compliance expectations.

Asset holders can choose from a wide selection of tokenization platforms, but in the end, they need a partner who understands their asset’s value. Dibbs is well acquainted with the value of assets across a broad range of categories, and we bring our expertise from running our own marketplace to bear in helping organizations leverage and monetize their property.

Meanwhile, Dibbs lets sellers and businesses interact across global markets while guaranteeing physical and digital assets are fully insured. Interested in learning more? Contact us today.