Towards Inclusive and Sustainable Infrastructure Development through Blockchain-enabled Asset Tokenization: An Exploratory Case Study
Yangguang Tian, R. Edward Minchin, K. CHUNG, Junghoon Woo, Peter Adriaens
Abstract
Abstract Infrastructure development is a key to supporting the economy and building social resilience. Unfortunately, existing infrastructure financing models struggle with multiple issues to close the widening financial gap and integrate environmental, social, and governance (ESG) factors to improve resilience and achieve sustainable growth. With the emergence of innovative technology, blockchain-enabled asset tokenization shows the potential to create a new economic model to integrate non-financial values, such as positive social and environmental impacts, into tradable cryptographic tokens. Tokenization offers opportunities to generate long-term positive social and environmental impacts, along with better financial returns, which further improves the profitability and bankability of infrastructure projects. SolarCoin, WePower Token, and ZiyenCoin are analyzed in this exploratory case study research to demonstrate how blockchain-enabled asset tokenization can be applied to infrastructure development. It is identified that tokenization promotes inclusiveness and sustainability through shareholder empowerment, incentive monetization, and finance optimization. Obstacles hindering the broader adoption of tokenization and policy implications are also discussed.