Blockchain technology has spawned yet another source of value with the advent of real-world asset and security tokenization. Companies like CPI technology provide the infrastructure to make asset tokenization a reality.
It all started with the security token, or stablecoin concept. Stablecoins were initially the recipients a lot of negativity from the cryptocurrency community. A cryptocurrency that was pegged to a traditional, fiat money source or commodity was immediately suspect by proponents of decentralization.
Third party regulatory entities is inevitable for the stablecoin concept. Trust arises from the asset backing the stablecoin. In most cases, decentralization is impossible.
However, stablecoins have earned a place in the cryptocurrency space based on several key features or services.
First, they provide the potential to minimize price volatility of a token, a huge area of concern throughout the cryptocurrency market. Additionally, some have been pegged to cryptocurrencies as an alternative to fiat or commodity backings, allowing smart contract-based features. Finally, stablecoins have begun to serve as an effective bridge between digital assets and the traditional financial world.
This last use case has caught the attention of big banking enterprises and blockchain entrepreneurs alike. JP Morgan was the first major financial institution to launch a stablecoin in February 2019.
The banking giant has ties to the cryptocurrency space beginning in 2017 with the Interbank Information Network (IIN) for cross border payments. It has been an enormous success in the fiat banking world. As of April 2019, 220 banks are utilizing IIN.
JP Morgan anticipates even more value from the JPM stablecoin. It eliminates trust issues due to the 1:1 backing while maintaining strong smart contract capabilities. Also, regulatory standards are already firmly in place, so KYC and AML checks are not an issue.
Blockchain developers, however, are taking the stablecoin concept in a different direction. Although different, new platforms emerging from blockchain companies possess the potential to be equally profitable.
Tokenizing the world
One such platform, CPI Technologies, is tokenising real world business assets. By offering full-service security token offering (STO) strategies, including software, project management, expert market advice, and legal service support, CPI provides businesses the opportunity to streamline operations.
Blockchain-based investments are nearly limitless in nature. One of the primary advantages of blockchain is its potential scalability. A lot of activity can occur in a very short amount of time, minus third party involvement or risk of delay or error.
Trading and investing can take place 24/7 in the world of cryptocurrency, as assets are not dependent upon the operational hours of the New York Stock Exchange or any other fiat investment body for oversight and management.
The CPI platform, founded by cryptocurrency fundraising thought leaders Marvin Steinberg and Maximilian Schmidt, is dedicated to making the STO process a reality for up and coming tech firms and financial projects. With highly flexible software designed to provide optimal security and regulatory compliance, CPI solutions are optimal for any size project.
Unlike the unfortunately volatile, short-lived, and frequently disastrous ICO craze of 2017, STOs are built for the long haul. CPI is seeking to continue establishing a solid reputation for helping projects ethically and sustainably reach funding goals.
Both founders are strong believers in the use case potential of the STO for asset management across an unlimited range of securities and real-world commodities.
According to CEO Maximilian Schmidt, “Tokenisation is one of the best use cases of blockchain technology. Matching real-world securities and assets like real estate or precious metals with tokens on the Ethereum blockchain will revolutionize how people buy and sell securities and assets. Removing the middle man will result in a dramatic decrease in commissions and increase the liquidity in such securities.”
CPI seeks to revolutionize the fundraising and asset management landscape with powerful blockchain technology and an experienced, comprehensive support team. One of the beautiful parts of this system how the STO concept frees up valuable time and resources to focus on often undervalued aspects of a fundraising endeavor: market strategy, legal compliance, and project brand management. With the CPI solutions, integration of all these factors is a strong reality for clients.
With stablecoins and security tokens no longer the plain country cousin of Bitcoin, companies are beginning to realize that now is the time to consider an STO-based funding campaign for the next big business project. With CPI’s whitelabel offerings, an STO is not only a good fiscal move, it is also simple and stress-free.