Tokenization of sustainable infrastructure can address some of the fundamental challenges of the asset class.
Tokenization is the digitalization of an asset, where each token represents ownership of a part of the underlying infrastructure project. Blockchain enables the frictionless storage and transfer of these cryptographic tokens.
Tokenization can deliver a wide range of benefits—such as lower transactions costs, better transparency, enhanced liquidity, access to alternative sources of capital, decentralization and increased efficiency—while addressing the issue of scale.
We highlight challenges and opportunities of tokenization of infrastructure in our report.