The world of finance and investment is undergoing a transformation with the advent of blockchain technology and the rise of tokenization. Tokenization of assets represents a ground-breaking approach to ownership and investment, offering a new and innovative market that transcends traditional borders. Tokenization involves the conversion of real-world assets, such as real estate, stocks, art, or commodities, into digital tokens on a blockchain or distributed ledger. These tokens represent ownership or access rights to the underlying assets. Unlike traditional financial systems, tokenization leverages the decentralized and secure nature of blockchain technology to enable peer-to-peer transactions without the need for intermediaries.
What are the key features of tokenization?
|Fractional Ownership Tokenization allows for the division of assets into smaller, tradable units. This enables fractional ownership, making high-value assets accessible to a broader range of investors.
|Liquidity and Accessibility By tokenizing assets, liquidity is increased as these tokens can be traded on blockchain-based platforms 24/7. This accessibility opens up investment opportunities to a global audience, breaking down geographical barriers.
|Reduced Intermediaries and Costs Tokenization streamlines the investment process by eliminating unnecessary intermediaries, reducing administrative costs, and potentially lowering transaction fees. This efficiency enhances the overall appeal of tokenized assets.
|Transparency and Security Blockchain’s transparency ensures an immutable and auditable record of transactions. Smart contracts, often employed in tokenization, automate and enforce the terms of agreements, enhancing security and reducing fraud.
|Global Accessibility Tokenization enables borderless transactions, allowing investors to engage in global markets without the constraints of traditional banking systems. This global accessibility fosters a more diverse and interconnected investment landscape.
|Market Efficiency The borderless nature of tokenized assets contributes to increased market efficiency. Faster settlement times and real-time transparency enable quicker and more informed decision-making.
Who can provide tokenization services and how can we help?
The emerging concept of tokenization calls for service providers and advisors specialized in such innovative technologies and duly regulated to accompany businesses in going digital. Our team in Mauritius is well versed in the blockchain concept and Fintech services and works closely with affiliates and partners duly regulated and licensed by the Financial Services Commission bringing together a one-stop shop solution in terms of setting up the appropriate structure and blockchain-powered platform for tokenization of assets.
Indeed, Mauritius is amongst the first countries in the Eastern and Southern African region to adopt comprehensive legislation on the provision of virtual asset services, lifting the veil of uncertainty that typically accompanies any innovative technology or way of doing business. The Virtual Asset and Initial Token Offering Services Act (VAITOS) 2021 was brought into force on 7 February 2022. It provides for a regulatory framework for new and developing activities regarding virtual assets and initial token offerings in Mauritius, as well as to safeguard against money laundering and financing of terrorism associated with such services.
Together with our partners, we are perfectly poised to structure our clients’ virtual asset services business as issuers of digital tokens based on real life physical assets or securities and in providing a new digital marketplace for such tokens to be traded in and from anywhere in the world in full compliance with the Virtual Asset and Initial Token Offering Services Act 2021 of Mauritius.
Where to start?
One of the first steps towards creating a fully operational blockchain-powered platform for the issue and trading of digitalized or tokenized assets in Mauritius is to incorporate a base Global Business Company topped up with a special Investment Dealer license. Our team in Mauritius is fully regulated and licensed to provide incorporation and structuring services as well as securing the appropriate investment dealer license to kickstart operations. Moreso, the Global Business Company combines the worldwide advantages of the Mauritius International Financial Center, its conducive tax environment and seamless banking system.