The digital revolution has brought about a paradigm shift in the way businesses operate and attract investments. One of the most transformative innovations in the financial sector is the tokenization of assets, particularly equity shares.
Tokenization allows converting equity shares and other real-world assets into digital tokens on a blockchain, improving transaction security and cutting costs. That approach to asset management is redefining the landscape of finance and investments, with Switzerland being one of the countries taking a progressive stance on blockchain technology.
Tokenizing Shares Makes the Investment World More Inclusive
When tokenized, equity shares resemble digital avatars of traditional company shares. By turning shares into tokens, business owners allow investors to easily add assets to their blockchain accounts. This process involves creating an apt number of digital shares, ensuring their price aligns with the real-world asset's value they represent.
The use of tokenization enhances the efficiency and security of share trading. When shares are on a blockchain network, the transactions are rapid and highly secure – that's what blockchain inherently offers.
Besides, the use of tokens supercharges the liquidity of investments. For investors, that means options to swiftly trade their digital assets as market dynamics change, while businesses can attract a more diverse investor base.
"Tokenization is not just the future – it's the present. It's the bridge that connects traditional investment strategies with the boundless possibilities of the digital age," Eugen von Rubinberg, the executive chairman, CEO, and co-founder at vidby, said.
With share tokenization, everything operates under the protection and regulation of Swiss legislation. Businesses using tokens and blockchain can confidently attract discerning investors. Moreover, these investors don't need hefty sums to invest: even a small portion of tokenized shares is up for grabs, broadening access to investment opportunities.
AI Video Dubbing Startup Raises $10 Million on Shares During a Seed Round
Swiss-based AI startup and YouTube's recommended vendor, vidby, offers a glimpse into the potential of tokenized shares. By leveraging the Ethereum blockchain, vidby has successfully raised $10 million through tokenized shares. With a certain number of shares retained by vidby itself, over 2 million shares are now registered as digital tokens or vidby Shares SHA.
“Since launching our strategy of trading tokenized shares, vidby has been at the forefront of driving action among startup investors. The value of vidby shares is rising more rapidly than that of other European startups,” Alexander Konovalov, CEO and co-founder of vidby, said.
Switzerland's Progressive Stance on Tokenization
Switzerland is consistently demonstrating a forward-thinking attitude toward blockchain technology. The Swiss government has been proactive in establishing a supportive regulatory framework in 2018 to address the nuances of emerging technologies.
As digital assets become more mainstream, countries like Switzerland are setting the benchmark for integrating blockchain technology into the financial sector. Implementing such a practice around the world, as vidby has it in Switzerland, will give a new impetus to the rise of the startup financing market.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.