The recent Citibank global moves to tokenize its share, claims that tokenizing financial and real-world assets could be the "killer use-case" and a multi-trillion-dollar opportunity, stressing further that for blockchain and cryptocurrency to drive a breakthrough with trillions of dollars, securities tokenization is the way.
In my opinion, a few points here could the benefits of share tokenization.
Tokens are secure and reliableBecause security tokens, exchange tokens like Bitget BGB, and many more are all kept on the blockchain, users can keep track of their origin and transaction history in a cryptographically verifiable way.
Tokens encourage disintermediationWith security tokens, investors can avoid middlemen who are usually involved in asset management processes.
Tokens can also help do away with multiple paper-based procedures, making reporting and auditing more efficient.
Provide higher liquidityAs security tokens enable fractional ownership, there will be greater liquidity within the market. More people have an opportunity to buy smaller stakes of illiquid assets like real estate, collectibles, and works of art .
Tokens are programmableThis means that users can program particular rules into the security token, enabling it to execute, regulate, and govern itself. For instance, security tokens can be programmed to verify who can buy them. Thus, you can prevent a non-eligible counterparty from trading those tokens if they haven’t passed the verifications.
