The tokenisation and digitalisation of physical assets is one of the most compelling use-cases for blockchain technology and stablecoins – they make assets like oil, gold, real estate, commodities, and many others a lot more accessible. This opens up ways to access new capital and investors.
Traditionally, commodities would require businesses and investors to transact in large quantities and is only available to select group of investors. This presents a high barrier of entry for investors looking to expose themselves to such asset classes. For businesses, it means that raising capital through these means will be inflexible.
Tokenising assets using blockchain technology allows them to be issued globally at any time. This provides investors access to fractional ownership of physical assets like art, antiques, fine wine, real estate, vintage cars, and many others.
Fractional ownership is beneficial for both businesses and investors. This lowers their costs as they do not need to issue via banks or list on a public stock market, and provides new avenues to raise capital.
Tokenised assets would require a blockchain-native payment solution. Stablecoins are the solution as they provide price stability for both businesses and investors to transact with.
Tokenised asset settlements are facilitated by smart contracts, which use stablecoins as their payment mechanism. Smart contracts automate transactions such as disbursing dividends and coupon payments, whilst the ledger records them in real-time. The ledger is irreversible, adding transparency for both businesses and investors.
Smart contract automation removes the fees associated with middlemen who process payment reconciliation and transaction monitoring. The only fees that businesses and investors have to pay are gas fees, which are based on the blockchain network’s load.
Stablecoins can be stored, sent, and received by anyone who has an internet connection. Stablecoins can also settle offline. StraitsX stablecoins, XSGD and XIDR, can be easily obtained by linking the user’s bank account to their StraitsX Account and then transferring funds.
StraitsX welcomes individuals, MSMEs, or institutions to trade digital assets like XSGD, XIDR, USDC, USDP, and BUSD. Trades start from US$50,000, and users can enjoy dedicated business support and near-instant local bank transfers.
Trade over US$500,000 with StraitsX OTC to receive a StraitsX-branded Ledger Nano S for free. Find out more StraitsX OTC here.
Note: If you are a high net worth individual, or institution, you can take advantage of StraitsX’s OTC Desk feature that offers deep liquidity and OTC block trades.
StraitsX and our DeFi partners are especially catered for our Indonesian and Singaporean users because of our native support of XSGD and XIDR. This would allow our regional investors to trade in their home currency, as opposed to factoring in the conversion of their home currency to the US Dollar (USD), minimising transaction fees, and slippages.