One of the great objectives of giants like BlackRock, is the creation of funds on tokenized assets, this is one of those goals that I have imagined since I started to know about Blockchain and cryptocurrencies, which opens a great world of possibilities in terms of finance. Let's remember that BlackRock is the largest and most influential fund manager on the planet, so normally, what this company raises is very likely to soon become a reality, in fact, there is already a tokenized fund of the company, but under the jurisdiction of the British Virgin Islands, so this fund has a long way to go before institutions with large capital can enter.
For some time now, BlackRock has been betting more and more on blockchain technology, even visualizing a future with tokenized assets, in a non-traditional financial model, since it would have "in theory", greater freedom and transparency. As I have mentioned in different articles, BlackRock feels the weight of the U.S. debt crisis that may gradually end the confidence of the dollar.
Tokenization of Assets
Without a doubt, asset tokenization is the future and I think few can say otherwise. The ability for more people to enter the markets without bureaucratic hurdles is something that can appeal to the masses. All this can make countries in South America and Africa, among other places in the world, participate and invest in new projects.
Token Build
This is a first tokenized fund from BlackRock, however, it is not within the US jurisdiction, so this is not an SEC approved fund in which US institutions can participate, but it can be seen as a start, surely in a few years we will see many tokenized funds.
This token is hosted on the Ethereum network (ERC-20), this is something that is not minor news, due to the fact that the instrument is on a public blockchain, which gives transparency to the operations made by investors, which represents one of the advantages of tokenization on a public blockchain.
Greater Investment Liquidity through Tokenization
Another of the great advantages is the liquidity and speed that operations are carried out in this tokenized fund, without the bureaucracy and intermediaries that charge commissions, it is fast, transparent and with the possibility of having liquidity for the corresponding investments.
Perspectives of a Tokenized Fund In Emerging Economies
For me, it is inevitable to remember a visit we made on behalf of Hive to the Chamber of Commerce of the State of Lara, in Venezuela, which is an institution based on the commercial guild, among businessmen and entrepreneurs. Among its affiliates are renowned industrialized companies in the city. There we talked about tokenized funds and about the economic perspectives that the tokenization of traditional assets meant. The tokenization of assets and tokenized funds will not be an exclusive product of large financial companies, also those institutions may opt for tokenized funds for investment in the economy of countries like Venezuela, at the same time that anyone can participate, something that at least in Venezuela seems unattainable looking at traditional finance based on our local currency, the Bolivar.
Undoubtedly tokenization has the potential to strengthen economies, inject liquidity and decentralization of investments in places never thought of before, of course, this would have to be adjusted in the law of each country, however, I am sure that in the future (maybe not too far away) tokenization will reach a point where countries must accept the decentralization and transparency that blockchain allows.
Tokenized funds on Hive or Inleo?
It is inevitable to think about the potential of blockchain such as Hive for the creation of tokenized funds, which help inject liquidity into projects within an emerging economy through a transparent, fast and commission-free mechanism for investors, where profits or dividends are paid with Hive or HBD and even in the LEO token.
I certainly mentioned this topic in that article I wrote about our visit to the Chamber of Commerce, certainly there is still a long way to go to see Hive as the foundation for the construction of a tokenized fund, controls and audits are needed for the tranquility of investors, perhaps the technological infrastructure has to be developed for this purpose, but Hive would have a great opportunity for tokenized funds in developing countries.
The BlackRock Example
For many of us, BlackRock is an institutional model that many will follow, betting on aspects that a few years ago was unthinkable, but it is a company aware of all the potential of the blockchain compared to the decline of the current financial system, BlackRock bets on evolution and tokenization is a very important aspect for another feature that we like very much, decentralization.
I think that the Build token for BlanckRock is an experiment, to already have the idea of managing a tokenized fund, however, they have applied to the SEC for some permissions that could give it an important boost in the short term, so it is a project to keep in mind and study carefully because it is a sign of the future of finance.
Posted Using InLeo Alpha
