đ¸TOKENISATION RWA: ENTERTAINMENT IPS
Last updated
Last updated
According to aggregator Artemis, RWA tokens grew nearly 28% on average during the second quarter of 2024, outshining other crypto sectors. In that same period, BTC and ETH slumped 10% and 2%, meme coins dropped 33% in line with the overall crypto market, and even AI-related tokens registered a massive 60.7% drop in Q2. So, RWA is hot, but what are they?
Tokenisation of Real-World Assets (RWA) refers to the process of converting physical or traditional financial assets into digital tokens on a blockchain. This process allows the representation of ownership or rights to the underlying asset in a digital format, enabling easier transfer, trading, and management of those assets.
Digital Representation: A token represents a fraction or the entirety of an asset. Each token corresponds to a portion of the asset, and multiple tokens can represent fractional ownership.
Blockchain Technology: Tokens are created and managed on a blockchain, a decentralised ledger that records all transactions. This ensures transparency, security, and immutability, meaning once a transaction is recorded, it cannot be altered.
Smart Contracts: These are self-executing contracts with the terms of the agreement directly written into code. Smart contracts facilitate, verify, and enforce the tokenisation process, automating tasks like transfers, dividends, or interest payments.
Liquidity: Tokenisation can significantly enhance liquidity. Traditional assets like IPs are often illiquid, meaning they are hard to buy or sell quickly. By tokenising these assets, they can be traded on secondary markets more easily, providing more flexibility to investors.
Fractional Ownership: Tokenisation allows for the division of expensive assets into smaller parts, enabling investors to buy fractions rather than the whole asset. This lowers the barrier to entry for investors and democratises access to high-value assets.
Regulatory Compliance: Tokenisation must comply with relevant regulations, such as securities laws, anti-money laundering (AML) requirements, and know-your-customer (KYC) standards. Compliance is often built into the smart contract and enforced automatically.
In summary, tokenisation of RWAs leverages blockchain technology to make traditional assets more accessible, liquid, and manageable, but it also comes with challenges that need to be carefully managed.
STR8FIRE is the one-stop-shop for IP owners, who seek investment through tokenisation of their IPs. Here are the typical key steps required to tokenise RWAs that STR8FIRE offers as a service:
Asset Identification: Select the asset to be tokenised.
Legal Structuring: Ensure the asset complies with relevant regulations, including ownership rights and securities laws.
Valuation: Determine the asset's value to define the token's price and quantity.
Token Creation: Develop digital tokens representing ownership or rights to the asset using blockchain technology.
Smart Contract Deployment: Implement smart contracts to manage token issuance, transfers, and automated actions.
Regulatory Compliance: Integrate Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols.
Market and Sell: Promote the Tokenised IP Offering, connect with the STR8FIRE community, and offer the tokens on the IP Launchpad.
Token Distribution: Distribute the tokens to investors through our IP Launchpad.
Ongoing Management: Maintain asset-related activities like payments, dividends, or reporting via the blockchain.
These steps collectively enable the secure, legal, and efficient tokenisation of Entertainment IPs through STR8FIRE.
