Tokenization-As-A-Service

The asset tokenization process for real-world assets on Circularity Finance is a methodical and secure approach that transforms various asset types into digital tokens on a blockchain platform. This process involves several critical steps that ensure the integrity, compliance, and functionality of the tokenized assets.

1. Asset Selection

The first step in the tokenization process involves selecting the type of real-world asset to be tokenized. This can range widely, from:

  • Real Estate

  • Financial Securities

  • Art

  • Cars

  • Tickets

  • Precious Stones

  • Precious Metals

  • Carbon Credits

2. Ownership Verification

  • Before the tokenization process can begin, there must be a thorough verification of the asset's ownership. This is a crucial step to ensure that the entity seeking to tokenize the asset has the legal right to do so.

3. Asset Valuation

  • The selected asset undergoes a comprehensive valuation process to determine its worth. This valuation forms the basis for creating the tokenomics of the asset, which will dictate how the asset is represented in tokenized form.

4. Tokenomics Creation

  • Tokenomics involves defining the economic model of the tokenized asset. This includes deciding the number of tokens to be issued, their price, distribution strategy, and any other economic factors that will affect the token's use and value.

5. Platform and Smart Contract Development

  • The next step is choosing the appropriate blockchain platform for tokenization, one that suits the asset type and complies with relevant regulations.

  • Then, smart contracts are developed. These are self-executing contracts with the terms of the agreement between buyer and seller directly written into lines of code.

6. Token Issuance

  • Once the smart contracts are developed, tokens representing the real-world asset are issued. These tokens encapsulate the value and ownership rights of the underlying asset.

7. Token Release and Dashboard Buildout

  • The issued tokens are then released on a custom Web3 page designed for the asset, allowing investors and interested parties to interact with the token.

  • Simultaneously, dashboards and landing pages are built to provide a user-friendly interface for managing and tracking the asset and its associated tokens.

8. Asset Management via Custom Dashboard

  • Token issuers can manage payouts and maintain investor relations through a custom dashboard. This enables efficient and transparent asset management post-tokenization.

9. Regulatory Approval

  • In jurisdictions like El Salvador, tokenization must be approved by the National Commission of Digital Assets or the equivalent regulatory body. This step is critical to ensure that the tokenization process complies with local and international regulations.

This structured approach to asset tokenization enables Circularity Finance to offer a compliant, secure, and efficient means of converting real-world assets into digital tokens. This process democratizes access to asset ownership, enhances liquidity, and opens up new opportunities for investment and asset management on the blockchain.

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