The Market for Security Tokens Is Early with Huge Upside
Backed by real-world assets, the market for security tokens is not expected to slow down anytime soon. Digital assets including bitcoin, Ethereum, and many other cryptocurrencies, are now part of our everyday lexicon as well as a growing branch of traditional banks and investments.
The secret to their growing success? Being backed by tangible assets makes all the difference when it comes to a digital asset.
A digital token in the real world
The cryptocurrencies that are backed by real-world assets enjoy greater value and circulation.
Security tokens, for instance, have a real asset behind them. To that end, ABC Tokens gives investors the chance to enter the commercial real estate investment world with fractionalized security tokens. These security tokens have the benefits of a digital asset, notably security and liquidity, as well as those of a more traditional investment vehicle, such as greater certainty and transparency; likewise, many investors simply have a better understanding of an investment in commercial real estate as opposed to a digital coin.
Security tokens lack the volatility that often comes with many other digital currencies. They are regulated by the SEC, which can provide much-needed peace of mind for many investors.
In 2021, security tokens flourished — inviting more and more people worldwide to invest in a promising digital token backed by a real-world asset.
Investors in Security Tokens Blend Crypto and Real Assets
When you invest in security tokens, you invest in a unique blend of both digital and real assets — creating a world of growth and investment opportunities. Rather than focusing solely on more traditional investment vehicles, for example, or 100 percent on cryptocurrencies, security token investors enjoy the best of both.
Many such investors report that they appreciate the opportunity to invest in the assets behind security tokens — such as the ability to invest in more tangible commercial real estate at a fractionalized, democratized rate with ABC Tokens. This creates a comfort level for the investor as well as real value, liquidity, and transparency throughout the investment process.
These same investors appreciate the high level of security offered by the blockchain. Blockchain technology has grown substantially in the past five years and isn’t expected to slow down anytime soon; it is hailed globally for its top-notch safety and security for investors.
Investors in security tokens also benefit from less volatility since tokens are backed by a real asset in the real world.
Token investors have the opportunity to invest in what they know while dipping a toe into the digital asset world.
Security Tokens Simplify Trading Experience
Whether you prefer commercial real estate, private equity, or hedge funds, security tokens make it that much easier to invest. These digital tokens are backed by a tangible asset and offer a long list of benefits, including security, liquidity, transparency, and ease of use.
The security token lifecycle begins with asset selection then advances to offering structuring and development of that token. It concludes with the issuance of the token and then trading the secondary token. Once a native token reaches the secondary trading stage, it can be structured in a variety of ways and remain on the market indefinitely.
At this point, a security token can morph into equity, debt, profit share, revenue share, and more — it can also be used to offer perks, special access, rewards for loyalty, and other benefits to the token holders.
Investors, then, can buy, sell or trade shares in commercial real estate, private equity funds, startups, hedge funds and other investment vehicles — all of which are traditionally illiquid — with greater ease and flexibility.
ABC Tokens in Action
At ABC Tokens, we are all about investment ease and opportunity. We believe in democratizing the process and welcoming new investors who may not, for instance, have previously been able to invest in commercial real estate but now can thanks to tokenization.
Tokens create a liquid, transparent and safe investment process while leveling the playing field for all. We are proud to be on the leading edge of security tokens for commercial real estate investments and look forward to more investments, more opportunities and more growth to come.