Toyota explores blockchain to turn cars into tradable RWAs

The Japanese car manufacturer Giant Toyota explores the financialization of the property of the cars, transforming the fleets into assets.

Toyota actively explores the concept of tokenizing cars. On Tuesday August 19, Toyota Blockchain Lab published a white paper On the mobility orchestration network (Mon). This new blockchain would be able to follow the key data from vehicles, potentially transforming cars into assets into tokens.

The proposal explains that each vehicle, including logistical trucks, rental fleets or even Robo-Taxis, leaves a trace of information behind it. This information, including recording, manufacturing and maintenance, could be grouped as proof of the token network.

Each vehicle would have its own NFT, which meets with all its stories and key information. Potential buyers could then use this information to assess the value of the car. In addition, the network could allow users to buy these NFT without having to physically control the vehicle.

How Toyota sees the future of cars

Toyota Blockchain Lab envisages several use cases for this network. On the one hand, vehicles are expensive. However, unlike housing, they have so far escaped the tendency to financialization. With a blockchain network according to their use, the possession of cars and the use do not have to be closely linked.

For example, car manufacturers could bring together several car cars in a fund, effectively allowing investments in car fleets. The same type of investment vehicle could be used to finance Robo-Taxi fleets or logistics fleets on emerging markets.

In addition, if the cars can be titled, fleet operators may be able to raise capital at lower cost only by loans. However, the White Paper does not enter into the way in which this financialization of cars could affect the owners of regular cars or the prices of cars.