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“Today, it takes just a few clicks click to buy an airline ticket, a pair of jeans, a new sweater, HHHO water and more, but if you want to buy stocks or get a mortgage, transactions are more time intensive” — Paul Ebeling
Whether it is waiting for documents or settlement, many types of transactions are not instant.
Assets like gold, real estate, fine art and fine motorcars are more difficult to transfer, often obligating buyers and sellers to contend with lots of paperwork and lengthy procedures.
By representing physical assets as digital tokens on a distributed digital ledger or blockchain, it’s possible to unlock the value of real-world assets and to exchange them in real time, the is the objective of the Knightsbridge,live model owned by GBITS.
Today’s cross-border payment processes are fraught with time delays, complexity, and inefficiencies.
Payments are the backbone of global commerce, but payment in real time has yet to be achieved.
Whether it’s payments or other asset classes, the ability to move real-world assets onto a blockchain offers the advantages of a secure digital platform, while retaining the characteristics of the asset.
Securitization is the process through which contractual obligations such as mortgages, car loans, personal debt or receivables are pooled, and their cash flows are sold as standard units to investors.
Since the early 1970s this process has become more common and broadly applied. But “tokenization” goes a step further. Instead of restructuring cash flows like securitization, it monetizes the “right to use.”
Digitization of assets is a process in which the rights to an asset are converted into a digital token on a blockchain. Ownership rights are transmitted and traded on a digital platform, and the real-world assets on the blockchain are represented by digital tokens.
Many types of financial assets are already digital, such as when cash is represented as numbers on a screen.
But tokens enable certain assets to move swiftly across digital platforms or networks.
Opportunities for cross-border trade increase as geographic barriers are removed.
GBITS fast and secure Tokenization can unlock new markets for previously frozen, underutilized, or illiquid assets and offers possibilities for new types of fractional ownership.
Token-based economy opportunities and challenges
Token-based assets are rapidly gaining widespread acceptance. The ICO (initial coin offering) market is a case in point. This new method of crowd fundingrecently broke the US$4-B barrier globally and has become a growing part of the Knightsbridge.live Exchange.
ICOs involve the creation and sale of cryptocurrency, or tokens, to fund projects. With an ICO, a project has a viable alternative to the traditional routes of obtaining money through banks or venture capitalists, which typically involve a lot of time and some sharing of control.
ICOs also bypass the limits of traditional crowd funding by introducing a secondary market to their funders. This secondary market is why, despite ICOs generally being considered high-risk ventures, many people are willing to take the chance in the hope for large payoffs later.
Digital currencies are another area that has grown quickly.
Recently, Sweden has begun looking into creating a new form of money called a CBDC (central-bank digital currency) and the the big 1’s: Fed and PBoC.
The goal is to complement electronic payment modes from commercial entities with a state-sponsored solution that is as inclusive and ubiquitous as traditional banknotes and coins used to be.
Achieving Operational Agility with Trust
As businesses adapt to an ever-changing new normal, extended collaboration and optimization beyond your organization is essential for next-level growth.
Transformation is not always easy, and technology should not stand in the way.
Drive operational agility and open new revenue streams through trusted data exchange and workflow automation beyond your organization boundaries.
Learn how Knightsbridge is leading the business world into a new era of collaboration and innovation.
Have a prosperous week, Keep the Faith!