| | March 20238CIOReviewIN MY OPINIONASSET TOKENIZATION DISRUPTING FINANCE AND TRADE OF REAL-WORLD ASSETS By Yanic Croteau, Global SVP Information Technology, Brookfield RenewableSome assets like real estate are not easily accessible by investors as they are complex to acquire and require large investment. Asset tokenization allows electronic trading of fractionalized ownership of assets other than just stocks, funds, and bonds. It facilitates investors' access to illiquid assets (tangible or intangible). Tokenization is the process of converting units, shares, or debt of an asset into a digital token on a blockchain.Why Tokenization could be a Game Changer in Real Estate and Infrastructure Industry?Project FinancingFor real estate and infrastructure asset owners, a lot of capital is required to build or acquire assets. Traditional value chain leverages institutional investors, typically located in the region where the asset is. Tokenization allows access to global markets, and its fractionalization allows access to retail and high net worth investors, not only institutional.Asset DiversificationFor retail and high net worth investors, it is complicated to diversify their investments into alternative investments like real estate with the traditional value chain. Tokenization opens new opportunities to access alternative assets managed by trusted and reputable asset managers. Yanic Croteau
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