The Japanese car maker Giant Toyota investigates the financialization of car ownership and changes fleets to assets.
Summary
- Toyota has proposed a blockchain that links all the important data on cars
- NFTs can represent vehicle possession and traders can bundle them in a portfolio
- The concept is especially useful in EVs, Robo-Taxis and Fleets
Toyota actively investigates the concept of the tokenizing cars. On Tuesday, August 19, Toyota Blockchain Lab released a white paper about the Mobility Orchestration Network (MON). This new blockchain would be able to keep track of important vehicle data, so that cars may be changed in Tokenized assets.
The proposal explains that every vehicle, including logistics trucks, rental fleets or even ROBO tax, leave a trail of information behind. This information, including registration, production and maintenance, can be bundled as proof on the network in a token.
Diagram shows Mobility Orchestration Network connects information in different regions Source: Toyota Blockchain Lab
Every vehicle would have its own NFT, which comes together with all its history and important info. Potential buyers can then use this information to assess the value of the car. In addition, the network can enable users to buy these NFTs without having to physically arrange the vehicle.
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How Toyota sees the future of car ownership
Toyota Blockchain Lab provides various use cases for this network. Firstly, vehicles are expensive. In contrast to homes, however, they have escaped the trend for financialization so far. With a blockchain network that follows their use, car ownership and use, it does not have to be closely connected.
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For example, car manufacturers can bundle multiple car -NFTs in a fund, making investments in cars effectively possible. The same type of investment vehicle can be used to finance Robo-Taxi fleets or logistics fleets in emerging markets.
What is more, if cars can be securitized, fleet operators can be able to attract capital cheaper than through loans. However, the white paper does not discuss how this financialization of car ownership can influence regular car owners or car prices.
Read more: https://crypto.news/tokenizing-wall-street-rwas-blockchains-moonshot/