Tokenizing physical assets
The digital twin lays the foundation for tokenization
Huefingen, 27 April 2020 – Since inception in 2007, regify (register & certify) has focused on establishing proof of evidence for e-transactions with its software platform and products. With the emergence of digital twins and the tokenization of assets, a wealth of business opportunities is being created, from democratizing ownership of physical assets, securitizing such assets to broadening usage through smart contracts.
Transforming the economics of physical assets into the digital asset world
Technology companies tend to underestimate the challenges of the transformation process as physical assets and their commercial value are subject to specific conditions. Attributes such as physical location, quality of asset, durability, safety, security, availability, maintenance or guarantees must be taken into account. What is needed is an accurate and current digital copy of the physical asset, the digital twin.
In the era of data economy, tokenized physical assets live their digital lives
Manufacturing industries have always compiled and maintained master data that specify the asset in detail and give indispensable information to the stakeholders. Advanced sets of master data have become the source for simulating behavior of such asset, predicting maintenance works or projecting the durability of the asset. Based on current high-quality data, a physical asset can be tokenized and can live its digital life to the benefit of the whole stakeholder community. Fractional ownership will generate new opportunities on digital marketplaces, will increase liquidity of tokens and will enable faster transactions more efficiently. Higher transparency will also facilitate the implementation of risk controls and compliance with rules and regulation.
Mastering the challenges of tokenizing physical assets
The more granular and up-to-date the data of the digital twin, the better a physical asset can be tokenized. As the resulting tokens are backed by the asset, investors into such tokens will demand accuracy of the data and instant verifiability. Therefore, a stringent tokenization workflow needs to be put in place that registers the asset with key master data of its digital twin and certifies its authenticity and quality before generating and issuing the tokens. For the lifetime of the underlying asset, the tokenization operation has to keep the status of the asset up-to-date and make this information available to stakeholders, from the buyer and seller of the asset-backed token and associated smart contracts to third parties such insurers.
Based on such tokenization process, asset-backed tokens are poised to become bankable assets that can be securitized and traded on digital exchanges. Kunkun Baeumges of regify points out: “We enable asset-backed tokens through a secure and verifiable tokenization workflow, be it for property, real estate, solar farms, fine art or other types of physical assets.” These qualities of the underlying process will be prerequisites to attracting a broader community of investors including the prudent ones who want to invest into asset-backed securities rather than into highly speculative crypto assets.
Press Contact:
regify GmbH
Kurt Kammerer
Roemerstraße 39
D-78183 Huefingen
Tel.: +49 (0)771-89784-236
pr@regify.com
About regify
regify's suite of trusted e-communication services enables you to transact securely and verifiably on any digital channel. Thanks to regify’s patented and security audited cloud technologies and products, organisations can communicate, collaborate and transact on the existing infrastructure. Regify services are made available through selected regify providers and can be used in standalone mode or integrated into workflows. Furthermore, regify users have secure access to the whole user community as the regify technology enables a global network of services. Customers include companies, both small and big.