Tokenization<\/strong> is one more technology that is driving the digital transformation<\/strong> of companies. According to the Tokenization Market<\/a> report, B2B companies that adopted tokenization<\/strong> invested 1.9 trillion dollars in 2020, and the investment is expected to grow to 4.8 trillion in 2025. But what is tokenization?<\/strong> Is it possible to tokenize a limited company<\/strong>? In this post, we will tell you all the details.<\/p>\n<\/div><\/div><\/div><\/div><\/div> Tokenization<\/strong> is the digital representation of something that can be physical or virtual. The clearest example is found in digital money (Bitcoins, Ethereum, etc.) that is used as a means of payment or as an investment. Still, there are many other things that can be tokenized, for example, debts, assets, works of art, businesses, real estate, and even people.<\/p>\n Tokenization<\/strong> is based on blockchain<\/strong> technology or a chain of blocks that provides security to the system and allows it to be decentralised; no bank or other entity controls it, which reduces transaction costs.<\/p>\n The word token is often associated with cryptocurrencies, but it is a broader term that refers to a unit of value issued by a private entity.<\/p>\n Tokenization<\/strong> is a technology that is being developed, so little by little the uses it can have will be seen. Currently, it is used for various purposes such as:<\/p>\n The particularity of all these actions is that they are carried out without intermediaries and with a direct relationship between the companies that offer tokens and the people who demand them.<\/p>\n To better understand the financing of business projects through tokens, it is necessary to remember that one of the most common ways of creating a project with several partners is the limited partnership<\/strong>. A limited company has a minimum share capital of 3,000 euros that is divided into shares owned by the partners. Initially, business projects need money and, sometimes, sources of financing such as bank loans or partner resources are not enough. That is where an ICO comes into play, which, in short, is a way of financing a business project.<\/p>\n Instead of looking for investors and offering its shares, the company offers virtual tokens or new cryptocurrencies. An example of this is the Brave browser. It is a browser that eliminates everything superfluous in navigation (ads, components that track, etc.) and guarantees safe browsing. Brave used a new way to find financing, created its cryptocurrency, BAT (Basic Attention Token) and sold 1 billion BATs for $ 35 million.<\/p>\n The tokenization<\/strong> of a limited company can bring advantages such as the following:<\/p>\n As a consequence of all the above, it is evident that the tokenization of limited companies<\/strong> and other companies, regardless of their size, provides competitive advantages in the creation of businesses and in the digital transformation of existing ones; it is a reality that will be developed in the future.<\/p>\n At ETL ILIA<\/strong>, we are specialists in the incorporation of companies<\/a>, such as limited companies; we have created more than 1,500 limited companies<\/strong>, and we advise companies on investment rounds, capital increases, deeds of the constitution and all the alterations that may arise during the life of the company.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/i><\/i><\/span>FAQ Tokenization Of Limited Company<\/span><\/a><\/h4><\/div>
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What is tokenization?<\/h2>\n
Effects of tokenization on companies<\/h2>\n
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ICO (Initial Coin Offerings) and financing of business projects<\/h2>\n
What advantages does the tokenization of a limited company bring?<\/h2>\n
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