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June 27, 2023

Tokenization: Unleashing the Potential of Digital Assets with Ledgible

At Ledgible, we empower businesses and individuals with cutting-edge solutions for blockchain connectivity and data normalization. Our expertise extends to a wide range of tokenization use cases, enabling seamless integration of real-world assets and traditional financial instruments into the digital realm. In this one-pager, we will explore the concept of tokenization, its benefits, and how Ledgible supports this transformative technology.

What is Tokenization? Tokenization is the process of representing tangible assets, such as real estate or art, and intangible assets, such as equities or commodities, as digital tokens on a blockchain or distributed ledger technology platform. By converting these assets into digital form, tokenization enhances their transferability, divisibility, and accessibility.

Why Tokenization? Tokenization offers a multitude of advantages that can revolutionize the way we perceive and interact with assets. Here are some key reasons why tokenization is gaining traction:

  1. Fractional Ownership: Tokenization allows for fractional ownership, enabling individuals to own a portion of an asset rather than the whole. This opens up investment opportunities for a wider range of individuals and reduces barriers to entry.
  2. Liquidity and Transferability: Tokenized assets can be easily bought, sold, and transferred on blockchain networks, facilitating efficient liquidity and reducing settlement times. This flexibility enhances market efficiency and accessibility.
  3. Asset Accessibility: Tokenization unlocks assets that were previously illiquid or difficult to divide. It provides new avenues for investors to access markets that were once restricted due to high costs or regulatory constraints.
  4. Compliance and Risk Management: Tokenization requires careful consideration of legal, regulatory, and tax implications. By partnering with Ledgible, businesses can navigate compliance requirements, manage risk effectively, and ensure regulatory alignment.

How Ledgible Supports Tokenization: As a trusted and independent third party, Ledgible offers comprehensive solutions to support businesses and individuals in their tokenization journey. Here's how we enable seamless integration and efficient management of tokenized assets:

  1. Compliance and Operations:
  • Holder Activity: Ledgible provides detailed insights into holder activity, enabling businesses to monitor and track tokenized asset transactions effectively.
  • Intraday Allocations: Our platform facilitates real-time tax, accounting, and distribution allocations, ensuring accurate and timely reporting.
  • Liquidity Monitoring: Ledgible helps businesses monitor liquidity levels, ensuring the availability of assets when needed.
  • Attestation of Real-World Assets: We offer verification and attestation services, comparing real-world asset balances to tokenized asset balances for transparency and trust.
  • Gain/Loss Aggregation: Ledgible's robust tools aggregate gain and loss data, enabling businesses to assess performance and make informed decisions.
  1. Credibility Enhancing Reports:
  • Transactional Reporting: Our platform provides detailed reports on tokenized asset transactions, ensuring transparency and audit ability.
  • Marketable Attestation Reports: Ledgible offers attestation reports that enhance credibility and provide assurance to stakeholders.
  • Performance Reporting: We provide performance reports that enable businesses and token holders to evaluate investment outcomes and monitor returns.
  • Enhanced Financial Reporting and Monitoring: Ledgible equips token holders with in-depth financial reporting and monitoring capabilities, empowering them to make informed decisions.
  • Depth of Market Volume: Our platform offers insights into the depth and volume of the tokenized asset market, facilitating market analysis and strategic planning.
  1. Tax Reporting & Reclaims:
  • Intraday Record of Ownership: Ledgible maintains a comprehensive ownership record, enabling accurate tax reporting allocations for Schedule K-1 and Form 1099.
  • Anonymized Holder Activity: We ensure the privacy of holder activity while enabling global foreign tax reclaims for tax treaty purposes.

Ledgible's mission is to make crypto, legible. Through our expertise in data connectivity, aggregation, and normalization, we empower businesses and individuals to harness the potential of tokenization. By leveraging our comprehensive suite of solutions, organizations can navigate the complexities of tokenization with confidence, ensuring compliance, transparency, and efficient asset management. Learn more about the potential use cases of the Ledgible platform by contacting our sales team at sales@Ledgible.io.

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We prioritize the security of your data. Ledgible is proud to have obtained the AICPA SOC 1 & 2 Type 2 certifications for our cryptocurrency tax and accounting tools. Data security and privacy are at the forefront of our product development, enabling you to confidently utilize our solutions in the hyper-secure world of crypto.

Jacques Potts - Sr. Marketing Manager at Ledgible and experienced financial author, marketer, and crypto expert. His work has been featured on The Street, Project Serum, FirstTrade, and Invstr.
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