Tokenized assets in a decentralized economy: Balancing efficiency, value, and risks

Abstract

The emergence of blockchain technology is compelling firms to rethink traditional operations and management strategies, with asset tokenization presenting a transformative potential to optimize transaction processes and redefine value chains. This study explores how blockchain-enabled asset tokenization influences transaction efficiency, value creation, and risk distribution across different market contexts. Utilizing a multiple-case study design, this research analyzes four asset tokenization business cases in multiple sectors —real estate, gold, gaming assets, and carbon credits—through 30 semi-structured interviews with participants from each case. Our research findings indicate that while tokenization significantly enhances transaction efficiency and creates new value propositions, it also introduces complexities in governance and risk distribution, which may challenge market stability. This study contributes to the contemporary blockchain literature by empirically illustrating how asset tokenization alters traditional asset management and investment models, highlighting the importance of tailored regulatory frameworks to address this emerging blockchain-enabled business models. Additionally, the research offers practical insights for business practitioners, suggesting that a balanced approach is necessary to leverage the benefits of asset tokenization while safeguarding market trust and sustainability.