Tokenization

$491B asset manager KKR’s health care fund tokenized on Avalanche

To access the fund on the Securitize protocol, investors need to submit their passports, fill out personal and tax information and complete a “liveness check.”

Digital asset company Securitize Capital is set to tokenize $491 billion asset management firm KKR’s Health Care Strategic Growth Fund II (HCSG II) on the Avalanche blockchain.

The news was shared by KKR on Tuesday, with the tokenization of HCSG II being described by the Head of Securitize Capital Wilfred Daye as a “significant breakthrough” for individual access to private equity markets.

The tokenization enables investors to own a token representing a share of the $4 billion healthcare-focused fund that invests in 23 North American and European-based companies versed in the pharmaceuticals, medical devices and life sciences sectors.

In order to buy in the HCSG II Fund on the Securitize protocol, investors need to submit their passports, fill out personal and tax information and complete a “liveness check” in order to be reviewed. Investors are also subject to a 0.50% management fee.

Founder and CEO of Ava Labs Emin Gün Sirer said the tokenization of the HCSG II Fund marked a “huge milestone” for the blockchain industry in enabling “real world assets” to move on-chain:

KKR said on-chain tokenization of real world assets also “lowers investment minimums, improves digital investor onboarding and compliance protocols, and increases potential for liquidity through a regulated alternative trading system.”

Related: Tokenization, Explained

The potential for tokenization to capture a large share of global assets has also been acknowledged by Boston Consultant Group (BCG) and Raiffeisen Bank International’s Blockchain Research Hub.

BCG predicted that $16.1 trillion of illiquid assets will be tokenized by 2030, while Raiffeisen Bank International’s Blockchain Research Hub predicted last year that most securities will be tokenized by 2030.

Securitize Capital operates the Securitize protocol, which was integrated onto the Avalanche blockchain in Dec. 2020 and is focused on “reinventing private capital markets by delivering trusted end-to-end security token solutions.”

Tokenization of illiquid assets to reach $16T by 2030 — Report

A large chunk of the world’s wealth today is locked in illiquid assets, notes the report’s authors.

The total size of tokenized illiquid assets, including real estate and natural resources could reach $16.1 trillion by 2030, according to the Boston Consulting Group (BCG).

In a newly released report from BCG and digital exchange for private markets ADDX, authors including BCG managing director Sumit Kumar and ADDX co-founder Darius Liu noted that “a large chunk of the world’s wealth today is locked in illiquid assets.”

According to the report, illiquid assets include pre-IPO stocks, real estate, private debt, revenues from small and medium businesses, physical art, exotic beverages, private funds, wholesale bonds, and many more. 

Reasons for this asset illiquidity are attributed to factors such as limited affordability for mass investors, lack of wealth manager expertise, limited access — such as when assets are restricted to elite cliques (in the case of fine art and vintage cars), regulatory hurdles, and other scenarios in which users have difficulty acquiring or trading an asset. 

On-chain asset tokenization could solve this problem, a market that surpassed $2.3 billion in 2021 and is expected to reach $5.6 billion by 2026, as per the report.

The authors added that in just the last two years, global digital asset daily trading volume has soared from 30 billion euros in 2020 to 150 billion euros in 2022, noting that it “is still minuscule in comparison to the total potential of illiquid tokenizable assets in the world.”

By 2030, the authors forecast the on-chain asset tokenization opportunity to reach $16.1 trillion — made up largely of financial assets (such as insurance policies, pensions, and alternative investments), home equity, and other tokenizable assets, such as infrastructure projects, car fleets, and patents.

Tokenization of global illiquid assets by 2030. Source: Boston Consulting Group

The authors also noted that this was a “highly-conservative forecast” and that in a best-case scenario, the tokenization of global illiquid assets could reach $68 trillion.

However, the potential of tokenized assets will differ across countries due to various regulatory frameworks and asset class sizes.

In Singapore, the Monetary Authority recently launched the Project Guardian, a blockchain-based asset tokenization pilot that will explore decentralized finance (DeFi) applications in wholesale funding markets by establishing a liquidity pool of tokenized bonds and deposits to execute borrowing and lending processes on-chain.

In addition to Singapore, tokens issuance is regulated in Hong Kong, Japan, the European Union, the United Kingdom, the United States, the United Arab Emirates, Germany, Austria, and Switzerland.

Other authors in the report include BCG’s project leader Rajaram Suresh, associate director Bernhard Kronfellner, and consultant for BCG Aaditya Kaul, noting:

“On-chain asset tokenization presents an opportunity to obviate many of these barriers of asset illiquidity as well as the current modality of traditional fractionalization.”

Real estate may be among the illiquid assets that could benefit from tokenization, with investors looking for investments backed by real-world assets in DeFi.

Cointelegraph Research Terminal revealed that real estate assets account for upwards of 40% of the pipeline for certain technology providers, making it one of the primary sectors for security token offerings.

Earlier this month, the digital asset investment platform Zerocap announced that companies on the Australian Securities Exchange (ASX) could be able to trade tokenized bonds, equities, funds, or carbon credits after a successful proof-of-concept trial.

Tokenization of illiquid assets to reach $16T by 2030: Report

A large chunk of the world’s wealth today is locked in illiquid assets, notes the report’s authors.

The total size of tokenized illiquid assets, including real estate and natural resources could reach $16.1 trillion by 2030, according to the Boston Consulting Group (BCG).

In a newly released report from BCG and digital exchange for private markets ADDX, authors including BCG managing director Sumit Kumar and ADDX co-founder Darius Liu noted that “a large chunk of the world’s wealth today is locked in illiquid assets.”

According to the report, illiquid assets include pre-initial public offering (IPO) stocks, real estate, private debt, revenues from small and medium businesses, physical art, exotic beverages, private funds, wholesale bonds and many more. 

Reasons for this asset illiquidity are attributed to factors such as limited affordability for mass investors, lack of wealth manager expertise, limited access such as when assets are restricted to elite cliques (in the case of fine art and vintage cars), regulatory hurdles and other scenarios in which users have difficulty acquiring or trading an asset. 

On-chain asset tokenization could solve this problem, a market that surpassed $2.3 billion in 2021 and is expected to reach $5.6 billion by 2026, according to the report.

The authors added that in just the last two years, global digital asset daily trading volume has soared from 30 billion euros in 2020 to 150 billion euros in 2022, noting that it “is still minuscule in comparison to the total potential of illiquid tokenizable assets in the world.”

By 2030, the authors forecast the on-chain asset tokenization opportunity to reach $16.1 trillion — made up largely of financial assets (such as insurance policies, pensions, and alternative investments), home equity, and other tokenizable assets, such as infrastructure projects, car fleets and patents.

Tokenization of global illiquid assets by 2030. Source: Boston Consulting Group

The authors also noted that this was a “highly-conservative forecast” and that in a best-case scenario, the tokenization of global illiquid assets could reach $68 trillion.

However, the potential of tokenized assets will differ across countries due to various regulatory frameworks and asset class sizes.

In Singapore, the Monetary Authority recently launched Project Guardian, a blockchain-based asset tokenization pilot that will explore decentralized finance (DeFi) applications in wholesale funding markets by establishing a liquidity pool of tokenized bonds and deposits to execute borrowing and lending processes on-chain.

In addition to Singapore, tokens issuance is regulated in Hong Kong, Japan, the European Union, the United Kingdom, the United States, the United Arab Emirates, Germany, Austria and Switzerland.

Other authors in the report include BCG’s project leader Rajaram Suresh, associate director Bernhard Kronfellner and consultant for BCG Aaditya Kaul, noting:

“On-chain asset tokenization presents an opportunity to obviate many of these barriers of asset illiquidity as well as the current modality of traditional fractionalization.”

Real estate may be among the illiquid assets that could benefit from tokenization, with investors looking for investments backed by real-world assets in DeFi.

Cointelegraph Research Terminal revealed that real estate assets account for upward of 40% of the pipeline for certain technology providers, making it one of the primary sectors for security token offerings.

Earlier this month, the digital asset investment platform Zerocap announced that companies on the Australian Securities Exchange (ASX) could be able to trade tokenized bonds, equities, funds or carbon credits after a successful proof-of-concept trial.

How to create and launch a cryptocurrency token with TokenMint?

To create a token using TokenMint, no programming knowledge is necessary. The TokenMint platform’s alpha version provides the fundamentals for creating a fungible token.

Developing a cryptocurrency token has been a complex task, as it requires advanced blockchain programming skills. Until recently, only blockchain developers with strong coding skills could create a mechanism to mint digital coins. This scenario, however, led to the development of platforms where anyone, not knowing even an iota of programming, could launch their cryptocurrencies.

The flagbearer of this change has been TokenMint, a no-code tokenization platform. The platform has bridged the gap between token creation and the mainstream, using automation to allow anyone with no development knowledge to create and mint tokens.

This article dives into questions like what TokenMint is and how it works, how to create an ERC-20 token and launch the token using TokenMint. Users will also learn how to mint the tokens they want. But before that, it will help to understand what ERC-20 and ERC-223 tokens are.

What are ERC-20 and ERC-223 tokens?

Ethereum request for comments- (ERC)-20 is a standard for fungible tokens created on the Ethereum blockchain. These tokens can represent virtually anything on Ethereum, from lottery tickets to reputation points. How to develop an ERC-20 token is usually a question asked by anyone who wants to launch a cryptocurrency of their own.

Related: History of ETH: The rise of the Ethereum blockchain

ERC-223 token is meant to enable users to securely transfer tokens to a wallet. It was created as a solution to a major problem with ERC-20: the lack of an event handling mechanism. ERC-223 standard offers a way to prevent unintentionally losing tokens inside of contracts that aren’t made to handle transmitted tokens.

What is TokenMint and how does it work?

Developed by Horizen, TokenMint is a tokenization platform designed to help anyone with little or no coding skills to create and launch their unique cryptocurrency tokens with custom tokenomics. The easy-to-use platform has put in place an automated drag-and-drop function, streamlining the entire tokenization process and helping one to quickly transit from a crypto enthusiast to a currency owner.

TokenMint has simplified tokenization for mainstream users while integrating custom tokenomics and enhancing the privacy element. The platform eliminates the barriers between tokenization and the average person with no programming knowledge.

Related: What is Tokenomics? A beginner’s guide on supply and demand of cryptocurrencies

The mainnet of TokenMint was launched in early July 2022. This comes after successfully running on testnet for months. Users successfully created hundreds of tokens on the TokenMint testnet, leading to the successful launch of the mainnet version.

Components of the TokenMint ecosystem

There are four key components of the platform that have a role in creating a cryptocurrency token: TokenMint chain, Token generator, Cobalt wallet and Block explorer. Here is a brief explanation of these components:

TokenMint chain

TokenMint chain is a sidechain built on the Horizen network meant to power tokens anyone builds on the platform. Developers can build other components atop the TokenMint sidechain as well.

Token generator

The crypto token generator is a web application and a token generation tool for creating and minting tokens. It involves a simple and streamlined process for creating fungible tokens.

Cobalt wallet

A browser extension for managing and storing cryptocurrency tokens created using TokenMint, Cobalt wallet is used to manage and transact with tokens generated on the platform.

TokenMint block explorer

TokenMint block explorer enables anyone to see all transactions that took place on the chain. It allows users to access all details related to transactions.

How to use TokenMint to create a token?

Creating a token with TokenMint is a fast-forward process with a few easy drags and drops, as listed below:

The token has been created by the system now with one’s preferred parameters. The platform is made to be easily accessible. And, even if the token’s creator doesn’t have the predetermined coding skills, it simply does not come into question because it’s all a matter of a few drags, drops and clicks. The next step is to mint a token. Keep reading to find out more!

How to use TokenMint to mint a token?

At the same screen space where “Create Token” appeared, once the token has been created, a new option, “Mint Token,” is then displayed and the user needs to click on it. When the next screen opens, the user has to populate the wallet address they want to mint to in the first box and in the second, the quantity of token they wish to mint.

The system now deducts the required number of ZEN from the Cobalt wallet and dispatches the number of tokens entered to the designated address. Anyone may use the TokenMint block explorer as well to find details.

Why use TokenMint for creating tokens?

TokenMint hopes to trigger the new wave of cryptocurrency platforms, particularly for people from non-programming backgrounds. As a robust platform built on Horizen’s highly secure blockchain infrastructure, TokenMint brings along trust that is so crucial for any project.

With the underlying Horizen blockchain having tens of thousands of active nodes — one of the largest in the blockchain space — TokenMint can support applications with large traffic on its platforms. On a zero code tokenization platform like TokenMint, a user without knowledge of software development can mint a token.

Dragging and dropping enable anyone to feel confident like a blockchain developer. This easy-to-use platform has a very simple and intuitive interface, giving users a seamless experience. As Horizen introduces more components, the functionality will receive further upgrades.

With security remaining essential for Horizen, they maintain a strict policy encompassing privacy, security and transparency. The TokenMint platform will harness the power of zero-knowledge cryptography in its future releases to keep a balance between privacy and security.

The road ahead

At a time when tokenization is expected to be the driving force for a new wave of innovations in blockchain, TokenMint offers a platform for non-programmers to create or mint crypto tokens. While TokenMinthas has already made tokenization accessible to the mainstream, it will become even more efficient as the technology develops and expands.

For anyone outside the tech domain looking to realize their business goals by creating a token, TokenMint has addressed the previous challenges and barriers. Moreover, users can continually customize their token design until it is in sync with TokenMint’s requirements.

Privacy has been a pivot point of Horizen and the element will be there in upcoming releases of TokenMint. One can expect key features like zk-SNARKs, nonfungible token (NFT) functionality and EVM capability to further enhance the performance of the platform.