A Full Dive Into Tokenization #006

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Hello crypto friends,

I feel honored to come before you all this day to discuss on an issue of great importance in the cryptospace.

I trust you are all doing perfectly fine and are enjoying your activities in the community as usual.

Today, we shall be learning new interesting details about tokenization and without wasting much of our time, let's dive into the application of tokenization.

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APPLICATION OF TOKENIZATION

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Tokenization is a very important concept in the cryptospace and here we shall be examining some of it's application.

• SECURITY TOKENS:

Security tokens is a very good application of tokenization, as tokenization affects security tokens in these following ways

REAL TIME SETTLEMENT

The feature of real time settlements is one Interesting feature that security tokens are being known for.

Settlements in the traditional security market can take days while security tokens takes a period of hours or minutes for its settlements.

This helps in accelerating the asset transfer process and minimize counterparty risk.

SECURITY AND CUSTODY SOLUTIONS

The security and custody of security tokens are very important considerations.

Specialized solutions have come out to provide an effective management of digital assets and a secure storage, thus reducing the risk of loss ir theft of the assets.

ENHANCED TRANSPARENCY

With the implementation of the blockchain's transparent ledger, it can be guaranteed that all transactions are publicly recorded.

And this transparency is very important for auditors, investors and regulators as it gives room for real time auditing and monitoring of transactions.

FRACTIONALIZED DEBT

With the help of tokenization, ownership are not the only property that can be fractionalized but also debt, debt can also be divided into tradeable portions.

This gives room for a more flexible investment opportunities in the bond market, thus posing a lower threshold entry for investors.

24/7 ACCESSIBILITY

The traditional financial market are subjects to specific holidays and trading hours.

The security token however, can be traded at any time in any day.
In other words, it is always available for trade and can be traded 24/7.

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CONCLUSION

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We have examined Interesting application of tokenization through security tokens.

As we proceed, we shall learn more about tokenization.