The rising trend of tokenizing real-world assets is seen as a gateway to unlocking fresh opportunities, particularly in investment and market liquidity enhancement. Tokenizing assets with blockchain technology is increasingly recognized as a means to broaden global access, enabling investors to own fractions of assets through their investments.

Traditional intermediaries in asset transactions often inflate overall costs, making the process expensive. However, tokenization eliminates the need for intermediaries, reducing costs and granting direct control to participants. This approach also addresses real-world challenges, such as funding struggles for SMEs. With Real World Assets (RWAs), SMEs can use assets as collateral to secure liquidity for advancing their projects, or participate in DeFi pools and investment vaults.

RWAs democratize access to investment opportunities, particularly benefiting unbanked individuals or those with limited banking access. With a simple registration process and internet access, individuals can participate in asset tokenization. Projects like Fathom protocol are collaborating with traditional businesses to offer market mechanics that provide yield, trading venues, and liquidity borrowing. Tokenization is expected to lead to the Internet of Value, enabling seamless storage and transfer at a lower cost within a global infrastructure.

Three key elements drive the market: liquidity access, ownership, and yields. Tokenization provides SMEs and individual investors with access to these elements while leveraging blockchain technology for security and transparency. Manuel Rensink, Co-Founder of Fathom Protocol, emphasizes how tokenizing real-world assets democratizes investment access and addresses finance challenges by enabling efficient collateralization of RWAs for liquidity borrowing.

FXD by Fathom aims to serve as the backbone of the hybrid network with a focus on global finance, utilizing on-chain collateralization by XDC and RWAs to resist bank failures. In essence, tokenizing real-world assets offers a plethora of opportunities for investors and owners alike, providing investment access and liquid borrowing capabilities.