Meaning ● Tokenized Asset Funding represents a novel approach for Small and Medium-sized Businesses (SMBs) to secure capital by converting ownership rights of assets—ranging from accounts receivable to intellectual property—into digital tokens on a blockchain. ● This digitization process allows for fractional ownership, expanding the pool of potential investors and enhancing liquidity compared to traditional financing methods relevant to SMB Growth.
Scope ● For SMBs, implementing Tokenized Asset Funding strategies can unlock new avenues for automation in fundraising. ● Consider this scenario, an SMB can streamline capital access by automating token distribution, investor onboarding, and dividend payments through blockchain-based smart contracts. ● Moreover, it reduces administrative overhead and expands access to a global investor base. For instance, tokenizing a portion of future revenue streams allows an SMB to raise funds for expansion while retaining equity, presenting an alternative to venture capital. ● Implementation typically involves engaging legal counsel to ensure compliance, selecting a suitable blockchain platform, and establishing a token offering framework that aligns with the SMB’s strategic goals.
