From classic assets to digitalization and finally tokenization – the financial system has certainly come a long way! But can tokenization become a real trend? Or has it already? Let’s find out!

 

Back to Basics

We all know where the financial world began – with classic assets in their typical, physical form. Precious metals, currencies, and more, traded face-to-face for other goods or cash – this was the normal way of doing business.

 

In a world of technology and digital, however, it was only a matter of time before assets too were digitalized. Just think about the stock market – from commodities to bonds and currencies – while it may sound complicated in theory, it has long become the new realm!

 

Indeed, how could we not enjoy asset digitalization! Speed of transactions, lack of need to store physical assets, reliability and safety of operations, convenience and ease. Does it get any better than this? Turns out, it does. In fact, it did already!

 

Decentralization & Tokenization are the New Black?

Digitalization as we know it always implies a central authority. Tokenization, on the other hand, means you and only you are the custodian of your assets. In other words, it is the epitome of the decentralized world.

 

Asset tokenization refers to the process of creating a digital equivalent or copy of a physical or financial asset. This digital copy carries with it all the properties of the underlying asset, and he, who owns this digital copy is the sole owner of the underlying physical asset. No central authority is in charge of said assets, leaving them and their fate entirely up to the individual.

 

Indeed, decentralization has taken over the globe! Just think of NFT and Centrifuge concepts! 

 

With NFTs one can basically digitally-wrap absolutely any asset – from a commodity to a painting, a t-shirt, a pair of shoes or a video – literally anything can become an NFT. In fact, the first NFT of a house ever sold only recently in South Carolina for $175,000.

 

Then there is the scale of the whole Centrifuge story — one of the largest projects in existence on the PolkaDot blockchain, capable of wrapping any asset of your choice.

 

Is this, however, all that tokenization grants us? Not even close! The number of investment options enabled by tokenization exceed all classic asset scenarios. From becoming your own funds’ custodian with DeFi, to staking tokens into liquidity pools and reaping rewards — it is nothing short of an unexplored universe of financial opportunity.

 

VNX & Tokenization

But where do we as casual users start our tokenization journey? It’s only fair that we begin with the one asset, the reliability of which has been proven over the years. It is the ultimate safe choice and long-term investment leader – gold. Our partners – the VNX platform – pioneers of tokenized metals, can help us here.

 

The VNX platform’s flagship product – the VNX Gold token is an alternative to purchasing the yellow metal in physical form. VNX Gold token holder is also the owner of an equivalent amount of physical gold, stored in a secure vault in Liechtenstein and redeemable upon the owner’s request via VNX platform.

 

In fact, VNX has taken tokenization even further than precious metals, becoming the first licensed company  in Europe to release tokens referencing Fiat currencies with the underlying gold base value. VEUR & VCHF are both multichain tokens referencing Fiat from a token generator licensed under the Blockchain act in Liechtenstein. Said stablecoins offer a traditional asset in the digital form, meaning they are the perfect instrument for crypto market operations, which can yet always be easily exchanged to EUR or CHF, respectively.

 

You can find all three of these tokens trading on our exchange as per links below.

VNX Gold (VNXAU): emirex.com/spot/trading/VNXAUUSDC 

VNX Euro (VEUR): emirex.com/spot/trading/VEURUSDC 

VNX CHF (VCHF): emirex.com/spot/trading/VCHFUSDC 

 

You can find out more about VNX via: vnx.li