Tokenization Process

Tokenizing your real-world asset on Asseta is a simple, fast, and fully decentralized process. Creators are guided step-by-step through the entire tokenization journey, ensuring that it’s easy and intuitive, without the need for complex paperwork or intermediaries. Whether you're tokenizing real estate, a business, art, or intellectual property, Asseta provides a seamless experience while maintaining the highest levels of security and decentralization.

Here’s how the tokenization process works:

1. Asset Registration and Uploading Documentation

The first step to tokenize your real-world asset on Asseta is to register it on the platform. This begins with the simple process of uploading essential documents that prove ownership and validate the value of your asset. Since Asseta is a fully decentralized platform, you won’t need to go through the traditional KYC (Know Your Customer) process. Instead, you will only need to upload relevant asset documentation to prove the legitimacy of your asset and ensure its value is properly recorded.

Here’s how the asset registration process works for different types of assets:

• Real Estate (Residential, Commercial, or Industrial): If you're tokenizing a property, you’ll upload documents such as:

  • Property deed to confirm ownership.

  • Valuation report to establish the market value.

  • Building permits, zoning certificates, or tenant agreements (for rental income).

  For example, if you own a residential property, you’d upload the deed confirming ownership and a professional valuation report. Once these documents are uploaded, the platform automatically verifies them, ensuring the property’s details are securely recorded on the blockchain.

• Businesses and Startups: For tokenizing a business, the documents you need to upload include:

  • Company registration documents like Articles of Incorporation.

  • Financial statements, including balance sheets and profit and loss reports.

  • Ownership or shareholder agreements.

  For instance, if you own a tech startup, you would upload your company registration and any valuation documents, proving the legitimacy and value of the business. This provides investors with confidence and transparency when buying security tokens tied to your business.

• Art and Collectibles: When tokenizing artworks, luxury collectibles, or rare antiques, you’ll upload:

  • Proof of authenticity (e.g., certificates from recognized appraisers or institutions).

  • Appraisal reports to establish the item’s value.

  • Photographs to visually represent the asset.

  If you are tokenizing a painting, you would upload the certificate of authenticity and appraisal report, ensuring that investors know the artwork’s provenance and value. This creates transparency, allowing anyone to buy fractional ownership in your art piece.

• Intellectual Property (IP): Tokenizing intellectual property like patents, trademarks, or copyrights involves uploading:

  • Patent or trademark registration certificates.

  • Licensing agreements to show potential revenue generation.

  • Legal documentation proving ownership of the IP.

  For example, if you hold a patent for a new product, you would upload the official patent registration and any related licensing documents, allowing investors to participate in the potential future income generated by your intellectual property.

2. Asset Validation and Token Creation

Once your asset is registered and the relevant documents are uploaded, Asseta’s system automatically validates your asset. This process is fully decentralized and transparent, as the validation occurs through the blockchain and smart contracts, ensuring that all information is accurate and cannot be altered.

Once the asset is validated, it’s ready for token creation. Asseta then generates security tokens that represent fractional ownership of your asset. The total number of security tokens issued will reflect the total value of the asset, divided into smaller, tradeable units, allowing investors to buy a portion of your asset. Each security token represents a specific percentage of ownership and entitles the holder to a proportional share of the asset's revenue and governance rights.

3. Fractionalizing Your Asset

The fractionalization process is what makes your real-world asset accessible to investors. Rather than selling the entire asset, you are able to divide it into smaller, tradable portions, represented by the security tokens. For example, if you have a real estate property worth $1 million, you can create 100,000 security tokens where each token is worth $10. This allows smaller investors to participate, with minimal investment amounts.

The ability to fractionalize your asset means that instead of needing one large buyer, you can now sell small fractions of your asset to a global pool of investors. This opens up your asset to a wider audience and makes it easier to raise capital without selling the entire property or business.

4. Token Distribution and Investor Participation

Once your asset is tokenized and fractionalized, the next step is the distribution of the security tokens to investors. The process is fully automated and executed through smart contracts on the blockchain. These smart contracts ensure that every transaction is secure, transparent, and completed according to pre-set rules. The security tokens are then available for purchase by global investors who are interested in participating in the asset’s future growth.

Investors can purchase security tokens directly through the Asseta platform, without the need for intermediaries or complicated processes. In addition to ownership through the security tokens, investors will also receive revenue tokens (for earnings such as rent or royalties) and governance tokens (for decision-making in the future of the asset), which makes their investment more dynamic and engaging.

5. Full Control and Transparency

Throughout the entire process, no intermediaries are involved. The decentralized, trustless system built on blockchain ensures that creators and investors can operate with full control over their assets and investments. Everything is transparent and secured by smart contracts, so there’s no need to rely on third parties or centralized entities. Every transaction, from the creation of security tokens to the distribution of revenue and governance tokens, is immutable and transparent on the blockchain, providing a safe and trustworthy ecosystem for both creators and investors.