How does tokenization enhance liquidity for physical assets?
Tokenization enhances liquidity by converting physical assets into tradeable digital units. Assets like real estate, commodities, or infrastructure can be fractionalized, enabling smaller investors to participate and existing investors to sell partial ownership. Blockchain ensures transparent ownership records and smart contracts automate transfers, settlement, and income distribution. Secondary markets allow continuous trading, improving price discovery and market participation. While liquidity depends on adoption and market interest, tokenization significantly reduces the time, cost, and complexity of traditional asset transfers, creating more fluid, accessible, and flexible investment markets for real-world assets.
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