Why Security Tokens Are Here to Stay

February 15, 2022
5 min read

Innovation. Transparency. Access. Liquidity. Diversification. Global footprint. And the list goes on and on.

The reasons that security tokens, which investors worldwide can use to purchase a fractional interest in a particular asset, are here to stay are extensive and noteworthy. Security tokens provide an innovative solution and expand opportunities for investors of all levels, creating a more prosperous investment environment while lowering typical barriers to entry.

ABC Tokens, which helps investors across the globe purchase commercial real estate through tokenization, is a firm believer in all of these reasons and more: The time is right for security tokens. The list of benefits goes on and on, but we are particular fans of the liquidity, accessibility, and transparency they offer.

As more and more companies hop on the blockchain bandwagon, security tokens can be used to create new investment opportunities that are entirely liquid while also supporting diversity in investors and diversification of portfolios. Likewise, security tokens offer efficiencies and ease that traditional investment vehicles typically lack and enhanced security procedures and global reach for both new and experienced investors.

Creating new opportunities for younger and less-seasoned investors, security tokens in the commercial real estate industry are leveling the playing field and democratizing the sector like never before. ABC Tokens is on the leading edge of the movement, thanks to its unique business model that fractionalizes portfolio equity and welcomes more investors to the commercial real estate world.

As cryptocurrency's awareness, usage, and comfort expand worldwide, digital asset buying and selling platforms are proliferating while giving investors the chance to buy a fractional or “micro-share” of a commercial real estate property. Interest and demand are, not surprisingly, being spurred on by millennials who are already comfortable with crowdfunding platforms and who are acutely interested in expanding their investing horizons.

Previously, investors who lacked the funds for a total transaction were left out in the cold, but now they are invited to the table. Not only is this creating a new class of investors and new investment opportunities, but the growing trend is also injecting new liquidity into the global commercial real estate market. Even more, tokenization creates new administrative efficiencies, supporting lower costs and more accessible, more transparent access.

Every time we hear of a new investor or company engaged in tokenization, we are thrilled because it highlights how powerful our business model is and how long we have a runway for incredible growth. The long-overdue process of democratization is helping investors and the industry, which is an ideal win-win.

Presently, 15 countries boast digital asset buying and selling platforms, with the United States, Hong Kong, Singapore, Thailand, Germany, and Dubai leading the way. An estimated 10 percent of world GDP may be saved on the blockchain in the next three years, according to the World Financial Discussion board.

ABC Tokens has raised more than $500,000 through token sales, which are anticipated to appreciate by 15 to 20 percent annually. In addition, the aims to have more than 5 million ABC Tokens in circulation in 2022, with $150 million deployed into U.S. commercial real estate.

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