Martín Maestu: “Asset tokenization means a paradigm shift in finance”

Asset tokenization is a completely novel process by which real-world assets are transformed into digital tokens. According to Martín Maestu, consultant In this regard, these tokens can be exchanged, stored and traded on blockchain platforms, providing exceptional security to protect our data and investments.

“Tokenization is revolutionizing the way we think about and manage assets,” says Maestu. “It is a technology that is breaking down barriers and opening up new possibilities in the financial world.”

Blockchain technology plays a crucial role in this system, as it enables the creation of decentralized and highly secure ledgers. Maestu highlights that digital tokens can represent a wide variety of assets, from stocks and bonds to real estate, commodities and even works of art.

“The fascinating thing about tokenization is its versatility,” Maestu explains. “Virtually any asset that has value can be tokenized, which opens up a range of opportunities for investors and businesses alike.”

It is a market that is making a firm and rapid entrance, due to its practicality and convenience. In fact, various consulting firms and financial analysts, including Martín Maestu, estimate that in the next decade, or even before, close to 10% of total global investments will be implemented under this method of asset preservation and exchange.

“We are on the threshold of a new era in finance,” says Maestu. “Tokenization has the potential to completely transform the way we invest and manage assets.”

What is the tokenization process? What is a token?

The tokenization process, explains Martín Maestu, is the series of steps through which a physical asset or property right is converted into a digital token, which can then be exchanged and transferred on a blockchain platform.

“The process begins with identifying the asset to be tokenized,” Maestu explains. “Then, a precise valuation of the asset is made and how it will be divided into tokens is determined. Finally, a smart contract is created on the blockchain that governs the issuance and transfer of these tokens.”

A token, as defined by Maestu, is a digital representation of an asset or value in the blockchain system. It functions as a digitalized asset and can have various functions and characteristics depending on the context in which it is used.

“Tokens are like digital certificates of ownership,” Maestu simplifies. “Each token represents a fraction of the underlying asset, and its value is directly related to the value of that asset.”

The benefits of asset tokenization are countless, highlights Martín Maestu, highlighting in particular its ability to make digital tokens accessible to a greater number of interested people.

This process involves the fractionation of assets, which significantly reduces the value of the investments required to participate in the market. As a result, barriers to entry are broken down, democratising the participation of new investors.

Another key aspect, according to Martín Maestu, is the use of blockchain technology, which offers unprecedented levels of transparency and security. Information is stored securely and in a decentralized manner in blocks connected in a chain. Each block contains a hash, a mathematical formula that is difficult to solve, of the previous block, which guarantees the integrity and veracity of the data.

Additionally, tokens are highly interchangeable, giving investors the ability to sell them quickly and generating liquidity even in traditionally illiquid markets.

Finally, Martín Maestu points out that “the splitting of assets leads to greater efficiency, since activities that used to be carried out manually are automated.”

In this way, unnecessary intermediaries that increased costs in traditional marketing methods are eliminated, resulting in more economical and accessible investments.

Revolution and practicality in real estate investments?

As Maestu explains, “Real estate tokenization is a process of dividing a real estate asset into small shares, which can then be sold to individual investors.” This approach allows investors to acquire and sell real estate without the need to purchase the entire property.

Martín Maestu highlights that asset tokenization offers a number of significant advantages in the real estate sector. Firstly, it makes the real estate market more accessible to individual investors, as asset tokens are often much more affordable than purchasing an entire property.

Secondly, tokenization increases liquidity in the real estate market, as asset tokens can be easily traded on cryptocurrency exchanges. This allows for greater flexibility for investors who want to enter or exit their investments more quickly.

Finally, Maestu notes that tokenization improves the transparency of the real estate market, as all asset token transactions are recorded on the aforementioned blockchain. This provides an immutable and reliable record of all transactions, increasing investor confidence and providing greater clarity in the ownership history.

New paradigm

Asset tokenization represents a paradigm shift in the world of finance and investments. As Martín Maestu points out, this technology not only democratizes access to various markets, but also increases liquidity, improves transparency and reduces costs associated with traditional transactions.

As more investors and businesses embrace this innovative way of managing assets, we are likely to see a significant transformation in how investments are made, especially in sectors such as real estate. Tokenization has the potential to open up new opportunities for investors of all levels, allowing them to participate in markets that were previously out of reach.

However, Maestu cautions that, as with any new financial technology, it is important for investors to educate themselves on the risks and benefits associated with asset tokenization. As this technology continues to evolve, it will be fascinating to watch how it reshapes the global financial landscape in the years to come.

Journalist and passionate about the Asian world.