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- Manlobbi
Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤
No. of Recommendations: 7
I'm always intrigued by new financial terms. What in the world is "asset tokenization"?
https://gemini.google.com/app/2550a5198794000a
Asset Tokenization is the process of issuing a digital token that represents ownership rights or fractional interest in a real-world asset or a financial instrument. An asset (e.g., real estate, fine art, a corporate bond, or private equity) is registered on a blockchain as a digital token. The token's smart contract embeds the asset's characteristics, ownership rules, and trading conditions. The token represents a claim on or a share of the underlying asset.
Traditionally illiquid assets can be broken down into smaller, tradable tokens (fractional ownership), making them easier to buy and sell. [end quote]
I don't see how this is different from traditional record-keeping of ownership except that contracts (such as interest payments) can be automated and potentially faster. But the tokens themselves would represent illiquid assets and presumably would trade on the open market. There's no guarantee that they would hold their value.
https://www.wsj.com/finance/currencies/scaramucci-...
Scaramucci-Backed Crypto Treasury Company Launches With $550 Million Fundraising Plan
AVAX One plans to tokenize traditional financial assets on the Avalanche blockchain
By Vicky Ge Huang, The Wall Street Journal, 9/22/2025
Anthony Scaramucci and crypto investment firm Hivemind Capital are investing in a new company that intends to buy digital tokens issued on the Avalanche blockchain, the first of its kind. ...
Launched in 2020, the Avalanche blockchain is a high-speed network used by various Wall Street banks and asset managers. The AVAX token has a market cap of about $14 billion. ...
AVAX One aims to own more than $700 million in AVAX tokens and tokenize, or represent traditional assets to be traded, on the Avalanche blockchain. Over the long term, it plans to acquire fintech and insurance companies and move them to the Avalanche network....
The rush to bet on tokenization follows Trump’s signing of the Genius Act, which establishes a regulatory framework for tokenized dollars known as stablecoins. The landmark measure has unleashed a wave of efforts to put everything from individual stocks to funds and real assets on a digital ledger....
Investors’ enthusiasm for so-called crypto treasury companies has waned. Some 25% of all bitcoin treasury stocks are trading below the total value of the tokens they hold... [end quote]
First of all, I wouldn't trust Anthony Scaramucci with $5 to buy me a cup of coffee, let alone with over half a million dollars. I can't imagine who would send this guy real money in exchange for tokens.
The speculative schemes that attract money, such as meme tokens, SPACs, etc. are just an indication of too much money sloshing around in the financial system. It's a symptom of a late-stage bubble.
I wouldn't touch this with a 10 foot pole.
Wendy
No. of Recommendations: 2
Are you aware that a scaramucci is a measure of time in some places on the internet. It measures the length of time a presidential appointee holds their job. It is similar to the head of lettuce that was used to measure how long Liz Truss would be a PM.
No. of Recommendations: 8
What in the world is "asset tokenization"?
Ooooh! A legal discussion!
Tokenization means that ownership of an asset is legally represented by something other than the asset itself - a "token" of that asset. The classic example is (or was) bearer bonds, which were the things that Hans was trying to steal in Die Hard. The asset was money held in a bank, but ownership of that money vested in whoever happened to be holding the physical "bearer bonds" - the 'token' of that asset. Traveller's cheques and deeds for real estate work similarly. You sell real property by giving someone a deed (a "token") that represents ownership of the actual asset.
This works because there are laws that make ownership/transfer of the token equivalent to ownership/transfer of the asset. If someone transfers a deed to a house to you, under the laws of your state that means that ownership of the house has transferred to you.
In the heyday of Peak Blockchain (circa 2017-2018), there were all kinds of proposals and predictions for how blockchain could be used to convey ownership of things more easily or efficiently. Blockchain systems are very useful for moving tokens around; transferring them, receiving them, keeping track of where they are, etc. So people thought, "Hey, this is much more efficient than real estate deeds or car titles, so why not use blockchain to buy and sell those things as well?"
Nearly all of these efforts came to nothing, because while coming up with ways to transfer and track tokens is a solvable technical problem (witness the success of crytpocurrency as something that works for that purpose), there's no real way to actually create a tie between the token and the physical asset. IOW, there's no way to "tokenize" the asset - to actually establish that the "token" of the thing corresponds to ownership of the thing. You can create all sorts of systems for moving the tokens around, but the tokens don't really correspond to any real world assets in a way that works for conveying ownership of the real world assets. Because there aren't any laws that say that ownership of the crypto token means you own anything in the real world, and you can't really create that type of system just using contracts.
No. of Recommendations: 0
PF,
Drudging up a scaramucci is like a hairball.
No. of Recommendations: 1
This is beginning to sound like the conversation I had with what amount to a salesman (bank VP) at HSBC just before the Great Recession, where he was confidently describing a tranche securitized group oof mortgages as "perfectly safe, yet paying great interest". I passed, but it took a while to get paid on some Hartford Insurance auction notes.
Jeff
No. of Recommendations: 0
Jeff,
Exactly, and for a lot of good reasons, it is starting to sound like, would the asset be there? Will the payout happen?
The world is high, quite literally.
The risks are growing. The downside can be that obliteration everyone used to fear. Used to fear. Blindly delivered.
The maths on the deficit spending do not add up. They could, but they won't.
Careful where you hold your money. The institutions have FDIC and SPIC for reasons long forgotten and forgiven. If the default happens the powers will think of ending the FDIC program.
No. of Recommendations: 0
Because there aren't any laws that say that ownership of the crypto token means you own anything in the real world, and you can't really create that type of system just using contracts.
But...blockchain.
No. of Recommendations: 0
Isn't this pretty similar to NFTs that were sort of popular within the last decade (2014)?
Non-fungible tokens (NFTs) are assets like artworks, digital content, or videos that have been tokenized via a blockchain. Tokens are unique identification codes created from metadata via an encryption function. These tokens are then stored on a digital ledger, while the assets themselves are stored in other places. The connection between the token and the asset is what makes them unique.
NFTs can be traded and exchanged for money, cryptocurrencies, or other NFTs—it all depends on the value the market and owners have placed on them. For instance, you could draw a smiley face on a banana, take a picture of it (with metadata attached), and tokenize it on a blockchain. Whoever has the private keys to that token owns whatever rights you have assigned to it.
Doesn't strike me as anything new.
