More Steps onto the 'Tokenization of Everything' Path

Back when SMTs had a purpose, we dreamt of the tokenization of the internet using them.

The tokenization of the internet will happen without SMTs. But now the talk in the cryptosphere has gone one step further.

Why stop at the internet when you can tokenize the world?

NFTs are trying to do that from one angle. With a high amount of eccentricity so far, but I believe things will cool down at some point.

But NFTs are not the only way to tokenize the world. Regular fungible tokens can do that as well.

Tribe tokens on Hive-Engine are not NFTs. Sure, aggroed and the team have in development the possibility to associate an NFT with a tribe on TribalDex. But a tribe can opt to have this feature or not. We are still talking about tokenization, even without NFT. And it's been working for how long? About two years already on Hive-Engine?

Investment and dividend tokens on Hive-Engine are not NFTs either. And likely they won't need to be. Just like they didn't need to have the tribe feature activated to be functional and highly rewarding, the few of them which had behind serious teams.

Here's another thing. I read a post this morning on Binance blog that talks about another example of tokenization that was implemented in its initial phase on the Binance website.

We are talking now about tokenization of stocks. The idea is not new, but now it starts to be put in practice more and more.

From Binance blog:

Today, we are launching zero-commission, tradable stock tokens. Now, you can access both cryptocurrency and traditional stock markets, all from the comfort of your Binance account. Each stock token on Binance will represent one share of equity stock, which is fully backed by shares stored in a depository portfolio of underlying securities, in cooperation with investment firm CM-Equity AG and asset tokenization platform Digital Assets AG.

The first stock tokens on Binance will be of Tesla Inc., the largest automaker by market capitalization. Tesla stock tokens on Binance will have a minimum trade size of one-hundredth of a stock token, representing the same fraction of a Tesla share. Stock tokens are priced and settled in Binance USD (BUSD), a regulated stablecoin pegged to the U.S. dollar and issued by Paxos Trust Co.

So, the first tokenized equity on Binance will be Tesla. Makes sense, after their investment in bitcoin and the favorability of many within the crypto world towards Tesla.

All Tesla tokens on Binance are backed by real shares held in a 'depositary portfolio' and one can trade a minimum of 0.01 Tesla tokens, thus buy the equivalent of 0.01 Tesla shares.

There are other types of derived assets where you can buy the equivalent of fractional shares, while receiving some of the benefits if the platform you use shares them (i.e. CFD - call for difference), but in this case you don't own anything. The trading platform does.

Tokens however translate into ownership with full benefits of that. Not sure about voting rights, I don't think they are transferred from the real asset to tokens at this point of evolution. But they most likely will be in the future.

If I'm not mistaken more shares have already been tokenized in the defi world. I don't know details, it's just an information that I came across in passing a while ago.

So this is not something that goes away, most likely. It is however an apparently easy way to move sometimes crazy gains from crypto and fund companies, without actually taking the funds out from crypto sphere. Seems like win-win. And the respective companies don't have to do anything.

All that's needed is for someone to hold for real some of their stock, tokenize it and sell the tokens in the crypto land at the market price of the underlying asset (the stock).

There might be legal implications that also need to be met before tokenizing a stock. But otherwise the process seems pretty straightforward. One of the easiest steps in tokenizing the world.

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