Working capital management and the rise of asset tokenization

Effective management of working capital is essential for a company's daily operations, ensuring it can meet short-term obligations such as payroll, suppliers, and taxes. Working capital is calculated by subtracting current liabilities from current assets. A positive result indicates operational stability, while a negative result increases liquidity risks. This process is closely tied to the cash conversion cycle, which tracks the time required to turn inventory and receivables back into cash.

To optimize this liquidity, companies are increasingly looking toward asset tokenization as an alternative to traditional banking. Tokenization involves representing real-world assets (RWA)—such as industrial warehouses, inventory, or accounts receivable—as digital tokens on a blockchain. This technology allows for fractional ownership and immediate, 24/7 settlement through automated protocols. By reducing reliance on manual banking processes and intermediaries, tokenization can lower operational costs and improve access to global capital markets.