Commodities

Tokenization

The tokenization of commodities and resources consists of representing these physical assets as digital tokens on a blockchain.

In few steps

Commodity or resource valuation

The first step in tokenization is the valuation of the commodity or resource. An expert in the field determines the value of the commodity or resource, which will be used as a basis for the creation of tokens.

Creation of tokens

Once the commodity or resource is valued, a defined number of tokens are created on a blockchain. Each token represents a fraction of the total value of the commodity or resource.

Selling the tokens

Tokens are then sold to investors. Each investor who buys a token then becomes a co-owner of the commodity or resource.

Legal management

Finally, token holders have rights commensurate with their ownership. For example, they may be entitled to a share of the profits if the commodity or resource is sold at a higher price in the future.

Examples

Gold

A company could tokenize a certain amount of gold, allowing investors to buy tokens that represent a fraction of that gold. This would give them exposure to the value of gold without the need to physically store the gold themselves.

Oil

An oil producer could tokenize a portion of its future production. Investors who buy these tokens would then be entitled to a share of that oil production once it is extracted.

Wine

A vineyard could tokenize a rare vintage. Each token represents a fraction of the wine. Token holders could receive a share of the profits from the sale of the wine or exchange their tokens for bottles.

Water

In some areas where water is a precious and limited resource, it could be tokenized. Token holders would then be entitled to a specific amount of water.

Rare metals

A company that mines rare metals could tokenize a portion of its future production. Investors who purchase these tokens would then be entitled to a share of that rare metal production once it is mined.

Main advantages

Increased Liquidity

Tokenization facilitates quick transactions and opens the market to more investors, thereby increasing liquidity.

Fractionalization

Tokenization makes commodities investing more accessible by allowing the purchase of small fractions of an asset.

Transparency and Security

Thanks to the blockchain, tokenization offers greater transparency of transactions and enhanced security.

You want to create and market your own tokenized assets?

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