Staying ahead of the technology curve means strengthening your competitive advantage. That is why we give you data-driven innovation insights into the financial services industry. This time, you get to discover 5 hand-picked tokenization solutions
Global Startup Heat Map highlights 5 Top Tokenization Solutions out of 1 709
The insights of this data-driven analysis are derived from the Big Data & Artificial Intelligence-powered StartUs Insights Discovery Platform, covering 2 093 000+ startups & scaleups globally. The platform gives you an exhaustive overview of emerging technologies & relevant startups within a specific field in just a few clicks.
The Global Startup Heat Map below reveals the distribution of the 1 709 exemplary startups & scaleups we analyzed for this research. Further, it highlights 5 tokenization solutions that we hand-picked based on criteria such as founding year, location, funding raised, and more. You get to explore the solutions of these 5 startups & scaleups in this report. For insights on the other 1 704 tokenization solutions for FinTech, get in touch.
VNX offers Blockchain-based Tokenization
The financial services industry is increasingly adopting blockchain technology thanks to its immutability and high transparency. Now, startups are using tokenization to bring these benefits to companies seeking to raise capital as well. Access to private capital is generally limited for most companies. Startups and companies alike are tokenizing their assets with equity token offerings (ETO) to receive funding from smaller investors.
Luxembourg-based startup VNX develops a blockchain-based tokenization platform. The startup’s end-to-end platform tokenizes assets by determining the appropriate offer, preparing transactional documents, and providing an electronic subscription process. This enables businesses to raise capital, diversify investors, as well as expand globally. VNX also offers a deal syndication platform that simplifies investor profiling and onboarding.
UnitedCrowd builds an Asset Tokenization System
In recent years, traditional investing firms are opening up to cryptocurrency markets. However, they still hold most of their wealth in assets like real estate and gold. Asset tokenization enables the trading of these assets on the blockchain, which brings the benefits of blockchain technology to markets of real-world assets.
UnitedCrowd is a German startup that provides an asset tokenization system. The startup’s decentralized finance (DeFi) solution uses smart contracts to bring real-world assets to the blockchain. It also offers UnitedCrowd Token (UCT), a cryptocurrency that lets customers trade their assets on the blockchain. The startup’s solutions enable businesses to manage finances, generate cash flow from tokens, as well as receive rewards through social activities on UnitedCrowd’s ecosystem.
Templum generates Tokenized Assets
Illiquid assets like penny stocks and collectibles are often hard to trade without affecting their value. Startups offer tokenization solutions that circumvent this limitation by leveraging blockchain to secure such assets. This allows traders to sell or buy fractions of these assets, broadening the investor base. This way, tokenization increases liquidity, speeds up settlements, and improves risk management of such assets.
Templum is a US-based startup that offers an institutional-grade platform for investing and trading tokenized assets. The startup’s platform features a low-latency matching engine that offers order routing optimization and scalability of operations. It enables investors to securely discover prices and liquidity of emerging asset classes as well as customize trading windows. Moreover, the platform allows anonymous trades and even trading of illiquid assets.
21Shares enables Digital Asset Tokenization
Through blockchain technology, asset tokenization is upending investment models with the market for security tokens rivaling cryptocurrencies. Investors that hold traditional financial instruments are also transitioning to tokenization. To enable this, FinTech startups offer solutions that allow investors to buy and sell digital assets using conventional financial institutions. This, in turn, accelerates the wider adoption of cryptocurrencies and security tokens.
Swiss startup 21Shares builds digital asset tokenization solutions. It offers both single asset and index exchange-traded products (ETPs) based on popular cryptocurrencies like Bitcoin, Ethereum, and Cardano. 21Shares leverages Switzerland’s highly favorable financial jurisdiction to deliver neutrality and stability in crypto investments. The startup’s products allow investors to trade crypto and other digital assets on the blockchain using their existing banks or brokerages.
Aurox provides a Cryptocurrency Exchange
Each year, more banks and financial institutions are adopting cryptocurrencies. Dealing in large amounts of these volatile currencies presents novel challenges. These include centralization risks, smart contract security risks, uncertainties in regulatory compliance, and obstacles to scalability. To address these, startups offer dedicated cryptocurrency exchanges for banks and other lending institutions.
US-based startup Aurox develops a cryptocurrency trading terminal. The startup’s Urus Token combines a high annualized percentage yield (APY) decentralized lending protocol with its liquid trading terminal. It enables trading across dozens of exchanges and allows traders to customize their workspaces. The startup’s token and low-cost fast-executing platform drive decentralized lending and borrowing with high margin lending capabilities.
Discover more FinTech Startups
FinTech startups such as the examples highlighted in this report focus on blockchain, tokenization, biometrics as well as cryptocurrency exchange solutions. While all of these technologies play a major role in advancing the financial services industry, they only represent the tip of the iceberg. To explore more financial technologies, simply get in touch to let us look into your areas of interest. For a more general overview, you can download our free FinTech Innovation Report to save your time and improve strategic decision-making.