A blockchain solution to traditional finance

Sumotex debuted in 2021 to renew the real estate economy via tokenization and fractionalization. Property and traditional financial systems faced the liquidity problem. Therefore, the development of Sumotex’s AssetFi protocol to fractionalize illiquid off-chain assets and move them on-chain will provide liquidity.

The problem with traditional finance

Traditional finance dates back to the barter era of 6000 BC. From the Mesopotamian period to the present day, it has evolved to become the basis of economic development. Annually, it registers a growth of 9 percent, with the global financial market at 22.5 trillion dollars, also 25% of the world economy.

Finances are an inherent part of human life. Without it, people cannot participate in transactional activities. Finance means that people buy goods, secure loans and immerse themselves in investments and product consumption.

It is also an everyday occurrence for organisations. Today, companies borrow for business expansion, capital support, bond issuance, a leveraged buyout of rivals under catastrophic conditions, and to boost their industrial stock prices. But a growing problem with traditional financial systems is centralization.

Financial centralization or centralized finance (CeFi) occurs when banks and other financial agencies authenticate remittances, lending and borrowing. However, the institutions and users are under the same regulatory control designed by the state and central banks. Therefore, failure to comply with these rules may result in severe penalties imposed by these bodies.

For example, Bulge Bracket Banks and some leading private equity or asset management organizations control the financial system. This structure paved the way for centralization to permeate the same. But despite the fact that institutional finance is the basis of economic development, it is almost impossible to avoid blockchain.

In particular, decentralized finance (DeFi) has expanded over the years. Nevertheless, there must be an explicit definition of asset management and blockchain investments. However, a blockchain solution is essential to renewing institutional finance and traditional investment, given that the latter capitalizes on the market.

Sumotex AssetFi brings solution to centralized finance

To this end, the Sumotex AssetFi protocol, a hybrid governance chain that allows users to perform on-chain and off-chain financing and investment procedures, brings decentralized solutions to traditional finance. It seeks to integrate with investment companies to create a decentralized investment and asset management platform.

Sumotex is AssetFi’s debut project and the first to provide fragmented digital and physical asset control. The protocol crumbles the wall between traditional finance and blockchain investment, and in turn restructures the existing fundraising processes on the chain. Furthermore, investors can tokenize their off-chain assets for instant liquidity.

After receiving board approval, an onboarding process for these assets will take place allowing investors to tap into the protocol’s liquidity pool. The direct onboarding process makes it easy for anyone to access the technology. Sumotex offers time-limited and permanent agreements to users.

In addition, the AssetFi chain offers the solution to the most prominent private equity funds setbacks due to its low liquidity asset nature. It solves the issue of decentralization of institutional finance. This in turn reduces the costs of decentralized investments.

It prevents private equity firms from entering an illiquid state. Tokenized Real Estates Investment Trust (REIT) funds will become available to anyone who wants to own real estate. Finally, it is affordable for investors with small capital, as the tokens are divisible.

Sumotex developed AssetFi to revolutionize the finance and investment sector. In the coming years, the protocol will capitalize on the $22.5 trillion financial market.

Our use case:

To achieve this mission, Sumotex gathers a team of goal-oriented enthusiasts for the AssetFi project. Together, they will explore the potential of the protocol and its essence for financing and investment.

Sumotex has a $3.5 million real-world use case with a Malaysian wellness center, Danai, along with its partnership with UBB. Together, they will integrate the health and wellness industry with the AssetFi blockchain. The Danai Medi wellness company is committed to promoting human well-being via a fused wellness service.

Furthermore, Sumotex has a secondary agreement with Homevest Global, a real estate investment and management company, to provide financial services to AssetFi investors. The firm offers an income-generating residential portfolio of US$2.5 million in Malaysia to clients. Homevest offers affordable properties to customers.