DigiShares newsletter Issue 93

TOKENIZATION OF REAL ASSETS IN 2022

An opportunity to launch innovative projects and target a completely new audience.

At DigiShares, we provide a White Label Software Tokenization solution for companies looking to create liquidity for their existing assets, and/or for their newly launched projects to be financed. The digital tokens created represent shares of the legal entity owning the underlying asset.

All of this is done under our clients' own roof, enabling them to onboard investors to their personalized crowdfunding platform, place the tokens, and finally let these investors trade between themselves after the placement is done. Clients get a solution for DIY crowdfunding and secondary liquidity. DigiShares also integrates with regulated security token exchanges providing a "Coinbase-like" trading experience in which anyone can participate.

Form a business perspective, this innovative technology that we white label, has many benefits:

> Efficiency & Cost : Generally, Tokenization makes the processing and management of securities much more efficient and less expensive. We estimate that thanks to the blockchain guaranteeing ownership and value, as well as transactions increasingly occurring in a peer to peer fashion, investors should be able to transact in an 10x faster and less expensive fashion.

> Liquidity: By creating tokens and offering liquidity, the issuer makes it possible to erase the so-called "illiquidity premium". In Real Estate deals, for example, an early exit by LPs usually means a hefty cut on the selling price - the illiquidity premium - in order of 20 - 30%. Therefore, by making an asset liquid, you can potentially increase its value by 20% to 30%.

> New clients targeted: By lowering the min. ticket size (could be as low as $1), Tokenization allows for the democratization of investment into real assets, enabling issuers to target a completely new investor base to fund their projects.

> Innovative projects: Thanks to the embedded smart contract into the token, our clients can launch more innovative projects than before. By automating processes, thanks to coding (smart contract = self-executing lines of code), completely new features can be created. From specific rights attached to a certain number of tokens owned by the same investor (such as a free week at your favorite resort every year), to the possibility to share revenues or profits with your investors, there are countless scenarios that can be envisaged.

As all these different subjects can be difficult to grasp, we have decided to conduct in-person Tokenization Masterclasses in different cities around the world. We have many coming up and more details will be mentioned below.

Xavier Trilling, EU Business Developer, DigiShares