Tokenization of Assets: 10 Tips for Successful Tokenization

In times like the present—characterized by high inflation and a financial crisis—more and more people feel uncertain. Adding to the difficulty, currency devaluation makes it increasingly hard to obtain capital without ultimately facing a loss. It’s therefore no surprise that many people are searching for ways to invest money and safeguard capital.

Real estate remains a particularly popular choice because it still serves as a secure investment. Other assets—vehicles, land, and more—are also attractive. Yet high interest rates and inflation remain problematic. Here, cryptocurrency offers an alternative. Through the tokenization of assets, you can buy or sell assets and precisely define the share involved. It’s effortless to purchase or sell only portions of assets—for example, by keeping 80 % of the tokens and selling the remaining 20 % on the market.

In this article you’ll learn how to successfully tokenize your assets with our ten expert tips and which points to watch out for to avoid complications.

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1 Tokenization of Assets: 10 Tips for Successful Tokenization


Tokenisierung von Assets – Übersicht
⭐ Vorgabe:	Tokenisierung von Assets
🏆 Dauer:	Ca. 3 Monate
💰 Kosten:	Projektspezifisch
📺 Zielsetzung:	Assets in handelbaren Bruchstücke (Tokens) zerlegen
⚡ Technologien und Kenntnisse:	Token, Blockchain (Ethereum), Smart Contracts

Examples of Well-Known Cryptocurrencies and Digital Tokens


Bekannte Kryptowährungen und Token
Coin	Beschreibung
Bitcoin	Das Urgestein und der Vorreiter unter den Kryptowährungen.
Ethereum	ERC-20 Blockchain, größter Bitcoin Konkurrent.
Monero	Sehr bekanntes Open-Source-Projekt mit vielen Optionen.
Neo	Ein bekannter Altcoin mit einem interessanten Projekt.
Ripple	Ein bekannter und recht günstiger Altcoin.

Tokenizing Digital Assets: Key Takeaways

Tokenization means assigning an item or object a corresponding value in cryptocurrency. Much like receiving a specific number or value of shares for real estate, you receive a defined number of tokens in the crypto space. Tokenization opens new avenues for capital and investment, creating new financing opportunities. A major advantage is that you can specify exactly how many of your tokens you wish to sell. Transactions are transparent and—thanks to blockchain and crypto technology—secure and trustworthy.

Which Assets and Property Values Are Tokenized as Securities?

Tokenization refers to assigning a value in cryptocurrency to an item, object, or service. For example, if you own a car or motorcycle, you can assign it a value of 1,000 Ethereum coins during tokenization. You can then sell these tokens—and thus portions of your vehicle—to others, choosing how many to sell. You might sell 250 tokens (25 %) or just 50 tokens. Likewise, you can purchase tokens yourself, thereby acquiring stakes in assets.

The tokenization of assets therefore offers you a flexible way to invest or raise capital. You don’t have to sell an entire asset; you can restrict yourself to selling shares—which you can later expand or repurchase. If you discover that 25 % isn’t sufficient, you can increase the tokens to 50 %. Conversely, you might later buy back, say, 20 % of the tokens or even the full amount, provided this is stipulated contractually. All this is enabled by the security of smart contracts and blockchain technology.

What Is Required for Asset Tokenization? Which Business Models Exist?

Geschäftsmodelle-Tokenisierung-Digitaler-Assets

Tokenizing your assets demands no special expertise and only a few prerequisites. First, determine the precise value of your assets and set an equivalent token value. Next, choose a blockchain and a cryptocurrency that supports tokenization—ideally one capable of smart contracts. These make transactions not only exceptionally simple but also extremely secure. You can then release the desired number of tokens to the market and merely wait for a buyer. You might stipulate, for example, that the buyer must purchase all shares—say, the entire 25 %. Alternatively, you can set a minimum purchase so multiple investors can participate. Two investors could each buy 10 %, and a third 5 %.

In exchange for purchasing stakes, buyers become owners, co-owners, or shareholders in your assets. That doesn’t always mean they gain usage rights. For instance, if they are silent partners, you can continue using the assets—such as driving the car—normally. However, you must consult the co-owners before selling or altering the assets. Silent partners also typically aren’t obliged to pay for maintenance and repairs. All details are set contractually in advance. The goal of tokenization is to obtain additional capital in a finely tuned and straightforward manner.

10 Tips for Successfully Tokenizing Your Assets on the Blockchain

You now know what tokenization is and the potential benefits it can offer. But remember—you’re not the only person thinking about tokenizing assets to enhance capital. Thousands share the same goal. So how do you successfully tokenize and secure capital? Our experts have considered this, too.

In this section we share ten expert tips to help you implement asset tokenization effectively and generate the capital you need.

Tip 1: Create a Solid Concept

Before you begin tokenization, you need a sound concept. Many people see this step as unnecessary—after all, it’s “just” about selling a number of tokens for money. It’s not that simple. You must decide which assets to tokenize, for how long, and under what conditions. You also need to plan how to reclaim the assets and whether you can forgo them. Tokenization brings capital but also restrictions you should understand. As a leading agency in the DACH region, Marketing Faktor can help. Simply contact us with no obligation.

Tip 2: Build Reserves and Security

The goal of asset tokenization is to generate capital—but caution is advised. If you wish to regain your assets later, you must repurchase the shares and possibly cover agreed fees. Repairs, modifications, or renovations may also arise, and you will usually bear those costs entirely.

You should factor in all these aspects beforehand and sell only as many shares as you can buy back. Plan for incidental expenses and unexpected costs; otherwise, you may have to tokenize additional shares to cover them. That would increase the capital required for repurchase and could cause problems. Many investors also charge fees for buybacks, which you must pay. Take this step only after careful consideration.

Tip 3: You Need a Professional Partner for Tokenization

To ensure successful tokenization and maximum security, it makes sense to work with a knowledgeable partner who can provide comprehensive support and advice. The partner should understand the nuances, know the risks, and highlight key considerations—otherwise, inexperienced users can quickly run into trouble.

Marketing Faktor is one of the leading crypto agencies in the D-A-CH region. We’ve managed many diverse projects and are happy to help you plan and execute your asset tokenization, ensuring no unpleasant surprises. Contact us for a free initial consultation.

Tip 4: Market Overview—Conduct a Market and Competitor Analysis

Tokenization is personal: you have certain assets and want to tokenize them to raise capital. Yet in many cases there are more assets than investors—you’re not the only person offering assets. It pays to examine what’s already on the market and what isn’t. You should also look at pricing and fees others charge.

Analyze the market and competitors closely. Pay particular attention to which coins or blockchains other projects use and their pros and cons. Thorough research can yield valuable insights for your own asset tokenization.

Tip 5: Explore Alternatives and New Options for Tokenizing Your Assets

For many asset owners, tokenization is a quick, straightforward way to raise capital—justifiably so. You don’t have to deal with banks, satisfy special requirements, or contend with their interest rates and lending rules. At first glance, tokenization appears easy and uncomplicated—and it is. But first impressions can be deceiving.

Although tokenization offers a fast route to capital, it’s not always the best option. As noted earlier, investors become silent partners with a say in future decisions about buying or selling your assets. They generally don’t share ongoing costs. Even if you continue to use the asset—drive the car, live in the house—there are restrictions. If you can’t buy back the shares, you won’t regain full ownership. Problems also arise in cases of death or sudden disability: you can’t simply inherit or sell the property, and major renovations usually require partner approval—even though they don’t share costs. Consider carefully whether tokenization suits your assets or whether other options might be better.

Tip 6: Choose Reputable Partners or Investors for Tokenization

When looking for a partner or investor interested in your assets, examine carefully whom you bring on board and under what conditions. Scrutinize offers that seem too good to be true; such offers often hide clauses or terms unfavorable to you.

Ensure partners have the required capital and that they are reputable, ideally with prior experience in real-estate tokenization. Online research yields plenty of information, and Marketing Faktor can also advise you on request. Contact our team for assistance.

Tip 7: Legal Advice and Support for Asset Tokenization

If you have questions or uncertainties about tokenization, consult a legal expert. Ideally, have every tokenization offer you consider reviewed by a specialist lawyer, who should also accompany you during contract signing. For real-estate assets, it’s advisable to involve a notary, who—together with a lawyer—ensures everything is legitimate, provides a valid contract, and handles formalities such as land-registry entries. For these reasons, always process tokenization through legal professionals and avoid dubious practices.

Tip 8: Invest Part of the Capital Securely

The main reason for tokenizing assets is usually an immediate need for uncomplicated capital. While tokenization is a good, simple way to obtain funds quickly, don’t make the mistake of reinvesting all the capital straightaway. Build reserves instead—set aside or save part of the capital. You’ll need it later for repurchase or to cover unforeseen repair costs. Plan ahead so you won’t have to tokenize additional shares unexpectedly.

Remember: tokenization involves selling portions of your assets. If you want to regain those portions later and decide what happens to your property, you’ll need sufficient capital for the buyback. On top of that, fees and other costs for processing the repurchase are usually added.

Tip 9: Familiarize Yourself with Tokenization Conditions

Tokenizing your assets turns another person into a co-owner. Contractual conditions govern usage, buyback, and more. In most cases investors are silent partners: they pay the agreed share and then have little further involvement. They don’t cover repair costs, and you typically continue using your assets after tokenization.

Yet you must understand the conditions thoroughly. Silent partners still gain certain rights. For example, if you rent out tokenized assets, partners are entitled to their share of the income. Tokenizing 50 % of a car means giving half the rental earnings to the partner. Partners usually don’t share maintenance costs. You also can’t sell tokenized assets without their consent; they typically demand a say and fees, plus their share of sale proceeds. Similar issues arise with inheritance, gifts, or allowing family members to use the property. For peace of mind, familiarize yourself with all contract terms and seek advice from a specialist lawyer and notary.

Tip 10: Marketing and PR

If you plan to tokenize multiple assets or do so professionally, launching a marketing and PR campaign can help attract potential investors. Ideally, you’ll end up with several interested parties and can choose among them. This flexibility prevents you from accepting a single poor offer.

Bear in mind that you’re never obliged to accept an investor. Examine the offer carefully and reject it if necessary—even if it’s the only proposal. After all, it concerns your property and the capital you need. Sometimes it’s better to wait for a better offer than to act hastily and regret it later!

Conclusion and Summary: Tokenizing Your Assets

That concludes our article on tips for asset tokenization. We hope our expert insights have provided ideas and inspiration to support your plans. Note that not all tips may apply to your specific situation, yet we believe we’ve offered useful information.

If you have questions or need assistance, the experts at Marketing Faktor are, of course, happy to help. Feel free to contact us without obligation.

New Opportunities for Asset Tokenization: Free Consultation

Do you have questions about the topics above, need help tokenizing assets, or perhaps want to create your own cryptocurrency?

Marketing Faktor is among the market leaders and one of the most successful crypto agencies in the D-A-CH region. We’ve already implemented many projects and advised clients on all things crypto—including Fyndery, Fürenand, Huugo, and many more.

We’ll gladly offer you a free consultation to develop an individual strategy for your project ⇒ Schedule a free consultation.