Example of the tokenization of assets using the example of a Ferrari
AutoAsset Group Ltd. buys high quality cars with collector value. In this case, a “LaFerrari” worth USD 1,500,000 is to be purchased be sold to investors via token denomination. Investors invest via the digital share certificate (token) and participate in the value development and the final selling price in 10 years.
The Ferrari is issued via 1,500,000 security tokens (1 share = 1 USD) to customers in packages of x 5000 tokens. The smart contract includes the share certificate of the car as well as an automated payment of the increase in value per year (dividend).
Company structure: Auto Asset Group Ltd. establishes an AG in Liechtenstein through Clevver. Liechtenstein has developed an appropriate legal framework in recent years, so that digital assets can be traded easily and uncomplicatedly on an equal footing with real assets. Clevver also assists with the bank account, the preparation of the valuation report and offers trustee services in Liechtenstein for the safekeeping of the vehicle title.
The Smart Contract programming via Clevver includes the digital share certificate of the car as well as the determination of an automated dividend distribution per year / in case of sale after 10 years. The smart contract is written on the well-known blockchain Ethereum.
The smart contract token is held in Clevver’s white label platform and can be purchased here against FIAT money or other cryptocurrencies by investors. The investors are registered in advance in the platform and verified according to the Money Laundering Act (KYC / AML).
What is the size of the market for tokenized assets
Token-based asset values are predicted to have massive market potential. Estimates suggest that up to USD 24 trillion of financial assets will be stored on the blockchain by 2027, which would correspond to 10% of (projected) global GDP (cf. WEF 2015) – and this does not yet take real assets into account.