Global problem of growing economic inequality and tokenization of assets as a prospect of its solution

Abstract

The paper is dedicated to the discussion of tokenization of backed assets as a promising and potentially new solution to the long-standing and unresolved issue of growing economic inequality in modern society. Asset tokenization is considered as a simple and technologically realistic way to facilitate the financial availability of valuable investment assets (real estate, securities, gold, etc.), which is a modern and unexpected manifestation of blockchain technology, provided that tokens of real assets are recorded in decentralized information platforms. The paper successively solves three working tasks: the problem of global wealth inequality has been described, and its solution through increasing digital financial accessibility has been presented; the essence of tokenization of assets as a new phenomenon and trend in the modern digital economy has been presented; the idea of asset tokenization due to its ability to radically increase the level of accessibility of investment assets for any strata of the population owing to a unique property of divisibility of the distributed ledger token has been explained. The author uses considerable aggregated data and a review of modern foreign literature. The author concludes that asset tokenization can indeed be a new means of significantly reducing the barrier to investment for billions of people worldwide by lowering the threshold of minimum investment costs and increasing the liquidity of existing physical assets. To make this possible, regulatory compliance, regulation and storage must be addressed. Many countries and organizations have taken steps to better understand the asset tokenization and proper value. It also causes the reconfiguration of institutions and rules of operation of the market infrastructure.