The Promise of Tokenization

Before we begin, let's give a brief overview of tokenization, its potential benefits and its current state to establish a common ground.

By definition, asset tokenization is the process of converting ownership rights to a real-world asset into a digital token on a blockchain. These tokens represent a fractional ownership of the asset that can be digitally traded, sold or transferred - similar to cryptocurrencies, but backed by tangible assets. This process has several benefits.

The first, and perhaps most obvious, is accessibility. Investors no longer need a large amount of capital to own a share in a valuable asset. Instead, they can purchase tokens representing a fraction of the asset - democratizing access to investment opportunities and providing a whole new pool of potential financiers of retail investors to capital seeking companies. I no longer need all the capital to invest in a house - I can simply buy a tokenized fraction of the house worth $1000.

Secondly, tokenization allows for increased security and transparency. Blockchain as an underlying technology inherently ensures that every single transaction is recorded securely and immutably, making fraud and shady transactions close to impossible and providing a perfectly traceable logbook for accounting and auditing.

Thirdly, tokenization offers efficiency and cost reduction. Where traditional processes, especially in the financial world, entail huge administrative costs and overhead, as well as various layers of paperwork and intermediaries, smart contract-based tokens can streamline all of this.

Last but not least, perhaps the most important benefit of asset tokenization is increased liquidity. Traditionally, entities and assets such as real estate, funds or companies are illiquid and require a lot of time and effort to sell or acquire. With tokenization, these assets are abstracted into tokens, which in turn allow for instant tradability, making the buying and selling of assets easier and significantly faster.

That all sounds very promising, doesn't it? However, there are also some pitfalls. Currently, tokenization requires a significant amount of regulatory expertise in order to be carried out securely and legally compliant. It also requires a deep technical understanding and know-how of the underlying smart contract and blockchain technology in order to be implemented correctly. ONINO is here to change that.

ONINO’s Approch to Tokenization

To understand our approach, let's take a trip back in time to the early 2000s - and take a look at the promise of eCommerce. At that time, the technology was on a massive upswing. It represented a whole new, promising opportunity for all kinds of businesses selling goods - suddenly they could offer their products online and reach entirely new markets that were previously inaccessible to them due to geographical restrictions.

However, there was one crucial problem: developing an online store from scratch was a major challenge, especially for companies whose core competencies do not include programming - which is the case for most companies that sell goods.

How would someone whose core business is developing high-protein nutrition or making handmade clothing program something as complex as an online store? They would either have to learn it from scratch themselves (which would take months to years) - or, at best, spend 40,000 dollars on a development agency to create the online store for them.

This is exactly where Shopify came into play. Shopify recognized that the technical building blocks needed for an online store are always almost the same modules - I need a way to add my products with images, I need to be able to browse them, a shopping cart function, a checkout with different payment methods, a shipping system, package tracking, invoicing and refund management.

It doesn't matter whether I'm selling protein shakes or handmade Christmas sweaters - the technical building blocks are always exactly the same (apart from minor differences). So Shopify figured: if everyone needs the exact same building blocks for their e-commerce, regardless of their area of expertise - why should everyone have to build an online store based on the exact same technology, developed from scratch, over and over again? That's inefficient. Let's just give people the technological building blocks to easily set up their individual online business without having to write a single line of code.

And that's exactly what we do at ONINO - but for Tokenization. 

We offer flexible, modular building blocks as a no-code software-as-a-service solution that enables anyone to leverage the power of Tokenization for their own business - without having to deal with the technical and regulatory complexities and hurdles.

We are building the Shopify of tokenization.

An energy expert whose core competence is the conception of profitable and sustainable solar parks should be able to use tokenized financing just as easily and without technical know-how as a protein shake manufacturer can sell his products in online stores without programming a store from scratch. 

So far, so good. Now you may be wondering how exactly the processes behind this abstract-sounding term tokenization work. Let's get to the bottom of it and set off on a short user journey through the ONINO Tokenization Platform. 

How Tokenization Works With ONINO

In short: the ONINO tokenization platform
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... is a no-code tokenization toolkit, the Shopify for Tokenization

...Enables issuers to easily tokenize by automating compliance and handling the required technology in the background

...Enables investors to easily purchase tokens and utilize asset classes that were previously inaccessible

…For Token Issuers

Once the onboarding process is complete, prospective token issuers can get straight to the heart of tokenization: creating a token. They can choose what type of product they want to tokenize: is it a community-centric token integrated into a digital platform, is it a financial product such as a loan, a bond, mezzanine financing, is it a tokenized fund, tokenized equity or even tokenized real estate? 

Based on the selection, the platform automatically determines whether the token needs to be implemented as a utility or security token, derives the correct token standard and determines the next steps. Once all necessary checks have been passed and all required legal documents for the selected token type have been created and uploaded, the tokenizer can proceed to the next and perhaps most crucial step: deploying the token. This is done fully automatically and with a single click - regardless of whether a web3 wallet or an integrated custodial wallet with our licensed regulatory partners is used to issue the token. 

Next, the prospective token issuer can decide how they want to sell their token. What starting price should they have? In what time frame do they want to sell it and how much do they want to raise for it? What are the minimum and maximum ticket sizes? All of this can be configured with just a few clicks.

Users can then add additional information about their token and its sale. From detailed descriptions for the token homepage on the platform, to images and all the necessary legal documents, everything can be easily uploaded to be presented to token buyers later.

Finally, when all parameters are set, we can customize the design of the tokenization platform to perfectly match the branding of the token issuer, deploy it on their own domain and open the gates for our token buyers.

Once the token sale has been successfully completed, token issuers can move on to the next crucial step: issuing their token. Manually, this would be a tedious process, but through the ONINO Tokenization Platform, it can be done with - you guessed it - a single click.

The platform also allows token issuers to easily manage every single administrative process from the back office, fully compliant yet hassle-free. They can easily view and manage all their investors, transactions and tokens, export relevant data for reporting, compliance and accounting, handle refunds and black- and whitelisting effortlessly, send legal documents and invoices to investors with one click and, in the case of security token-based products, manage payouts such as dividend or interest payments easily and compliantly.

And after a tokenization project has been successfully completed, a new project can be started with the same simple and hassle-free steps as described above.

Want to build another solar farm after your successful first token financing? Don't worry, it's just three simple steps away.

…For Token Investors

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After a convenient registration by email, phone or via any social provider, potential token buyers looking for exciting new investment opportunities can directly browse all available tokenization projects.

They can see all relevant information about an interesting tokenization project at a glance: a short summary, a detailed description with all relevant information about the token and the issuing company, price, sales period as well as minimum and maximum investments, images, all relevant legal and informative documents and, in the case of financial products, all relevant terms such as redemption periods and interest rates for a tokenized bond.

Once they have decided to invest, they can easily complete the onboarding process, which is tailored to the requirements of the issuer and the token. For example, onboarding can include a short investment knowledge questionnaire, secure and user-friendly identity verification and a simple digital signing of an investment contract.

After completing the onboarding process and ensuring compliance, the investor can choose which wallet they want to store their freshly minted tokens in, choosing between all imaginable types: from 420+ self-hosted web3 wallets to non-custodial, invisible wallets created using no more than an email or social login, to fully compliant, secure, custodial wallets powered by our trusted partners. 

After selecting the wallet, investors can choose how many tokens they want to buy. They can choose virtually any payment method that suits their needs: tokens can be purchased with crypto in the form of stablecoins on any network, with a credit card, with payment providers such as PayPal, Apple Pay, Google Pay or Klarna, or even with a traditional bank transfer.

Once the payment process has been successfully completed, investors receive all relevant information such as contracts and invoices by email. 

After the tokens have been issued, they can then view and analyze all their tokenized assets and their value in the detailed portfolio dashboard. 

And they can trade their tokens securely with other users on the integrated secondary market - or, if the token allows it, directly on an embedded decentralized exchange.   

Can I Also Benefit From Tokenization?

Let’s find out! Get in touch with us for a first free consultation where we will analyze your company, assess your idea and evaluate how the ONINO Tokenization Platform can benefit your business. 

The Role of Tokenization in the ONINO Ecosystem

At ONINO, we firmly believe that the key to true blockchain adoption lies in creating use cases that bring real, tangible value to the masses. And we believe that a truly meaningful blockchain ecosystem thrives on a diverse community, useful applications and traffic. And tokenization, as a primary use case, provides precisely that.

Tokenization is a wonderful tool to connect capital-seeking companies with retail investors looking for exciting new asset classes that were previously inaccessible to them, and therefore a prime example of just such a blockchain application that creates value for the masses. And this is precisely why we are providing the necessary technology at both the application and infrastructure level.

Furthermore, tokenization enables inclusive financing projects that open up investment opportunities that were previously inaccessible and that can target any audience - from meme coin fans to startup enthusiasts who have always wanted to be involved in one, or people who want to invest in real estate but don't have enough capital, to seasoned investment specialists. In this way, it enables the formation of a diverse and varied community.

Finally, ONINO's Tokenization Technology not only allows anyone to tokenize any asset at lightning speed, but also to launch their own tokenization marketplace if they wish, allowing them to start new tokenization projects for others. They can start and run their own entirely new business. And such community members who run their own tokenization marketplace bring an enormous advantage to the entire ecosystem: they are intrinsically motivated to look for promising new tokenization projects and take them on board. In this way, they serve as a catalyst that attracts value and generates traffic for the entire ONINO ecosystem, benefiting everyone. 

The Road Ahead

The ONINO Tokenization Platform is fully functional and is currently already being used in various customer projects, with many more in the pipeline.

While it already provides great value and massively reduces the effort, cost and time required for tokenization, we still have big plans.

We have a clear and ambitious development roadmap with many exciting features to make tokenization even easier already in the works.

After this ONINO Tokenization Platform Deep Dive, we will keep you regularly updated on the current status and development progress of the ONINO Tokenization Platform. To get a front-row seat to our latest updates, feel free to regularly check the ONINO blog and make sure to subscribe to our newsletter.

And soon, we will be launching a publicly available demo of the ONINO Tokenization Platform that will allow you to explore the benefits of the platform hands-on. Stay tuned! 

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