Digital assets are slowly starting to gain regulatory and institutional acceptance throughout the world, including Africa. It is, therefore, the perfect time to democratise finance through the tokenisation.
What is the democratisation of finance?
The democratisation of finance essentially means giving those with limited wealth access to a larger range of financial and investment products. Unfortunately, many of the opportunities in the finance and investment world are limited to a relatively small number of people who are considered ‘qualified investors’ due to their wealth, this is especially true for area’s like Africa.
“It is now time to democratise finance and investment opportunities by giving everyone the same opportunities when it comes to accessing the formal economy,” says Traderoot Africa Director Brett Dungan.
What are tokenised assets?
Tokenised assets are tokens which correspond to the value of an underlying asset. The tokenisation of an asset involves the digital representation of a physical or digital asset. An issuer will create these digital tokens and these assets will then represent a physical asset like airtime, an electricity voucher, or share shares in an asset. There are almost no limits to what can be tokenised. Tokenisation will enable more people to integrate into the formal economy and to access commodities and investments.
Tokenisation and financial inclusion?
Tokenisation allows investors from all wealth backgrounds to get the same opportunities. Tokenisation opens up a world of investment opportunities, especially to those groups of people who would not usually have these opportunities.
Tokenisation opens up niche asset classes to more people by dividing ownership of a specific asset into smaller parts, making them more affordable, thus, promoting financial inclusion.
How can Traderoot help?
Our Electronic Value Distribution Platform is capable of tokenising vouchers and other value added services (airtime, data, electricity vouchers, shopping vouchers etc). These offer alternative revenue streams to payment service providers, as their client base now expands beyond traditional retail sales and bank transactions, into MNOs, utility companies, brands, corporates, airlines, the hospitality sector and more.