First, let’s start with a recap.

In our beginner course, we touched on decentralized finance, security token offerings, tokenization of RWAs, and how IX Swap is solving the liquidity problem in the tokenization industry; through AMMs and liquidity pools. Lastly, we touched on private markets which are markets of high value that are not publicly accessible (that is, until tokenization came about).

So just how exactly can tokenization level the playing field for all investors? 

Remember how private markets are like secret clubs where only a few people are given exclusive access to? Normally, it’s tough for anyone outside the club to get in and be part of the action.

Now, here’s where tokenization comes in. Tokenization gives average joes the password to enter the secret club. Tokenization breaks down expensive private market assets into smaller pieces, making them more affordable to everyone. And now, anyone can participate in the private markets and get themselves a piece of the pie.
‍

Now you might be wondering, how does IX Swap, AMMs and liquidity pools all add to this? Let’s take tokenizing real estate as an example:

Real estate is a particularly compelling asset class for tokenization. Historically, real estate has been an illiquid investment, making it difficult for small investors to participate in. This asset class was previously limited to private investors due to high capital needs and high barriers to entry.

But with the onset of blockchain technology and tokenization, the ability to take, let's say a real estate building, and fractionalize the ownership of property into digital tokens, has allowed investors to purchase a fraction of the property, at a fraction of its cost. Meaning that any investor can get in on any deal, without the need for an insane amount of capital. Tokenization opens up real estate to any investor, big or small.

Tokenized properties can be traded on blockchain networks, which removes intermediaries, and reduces transaction costs. This benefits both buyers and sellers as they can complete transactions more efficiently, quickly, and securely. 

So once you have your security token or tokenized RWA what’s next? Well, that’s where IX Swap comes in. IX Swap has built the world’s first AMM-powered decentralized exchange just to do that. With the power of our AMMs and liquidity pools, we are able to create liquidity or automatically set buy and sell orders through our platform. IX Swap has revolutionized TradFi by opening doors to these previously private markets.By doing so we include investors from all around the globe, removing the previously high barriers to entry (you don’t need huge amounts of money to invest anymore), by enabling fractionalization and tokenization of these assets!