Nature's NFTs? How These Companies Fractionalize Rare Woods From Trees For Global Trade

Chinese companies are tokenizing rare Huanghuali trees and other commodities in an effort to address liquidity issues facing various industries.

Digital Tokens For Scarce Resources

Firms located on Hainan, a tropical island in China, are capturing images of Huanghuali trees, a scarce species of rosewood, to transform them into digital assets, as reported by Reuters.

Zhao Xiaobao, the Hainan representative for Geely Technology Group, a subsidiary of Chinese automaker Geely Automobile Holdings (OTC:GELYF), expressed that converting the Huanghuali into tradeable tokens could infuse much-needed capital into industries grappling with cash flow issues.

See Also: Mark Cuban Called Meme Coins ‘Musical Chairs’ A Year Ago: As 2025 Ends, The Floor’s Dropped From Under Most—Including His Favorite, Dogecoin

Game-Changer?

The company has plans to generate $13 million through an initial tranche of tokens to be introduced in Hong Kong in the forthcoming months. Each tree will be assigned a distinct value based on its size and quality, which will subsequently be divided into multiple tokens.

If successful, this would mark one of the world’s first attempts at tokenizing real-world assets that are biological in nature.

Interestingly, the digitization process is not limited to trees. A range of Chinese goods, including fine tea and high-end baijiu liquor, are also being converted into digital assets.

Tokenization, a technique for converting real-world assets into blockchain-based tokens, has emerged as one of the hottest decentralized finance narratives in the last year or so.

Analysts believe real-world asset tokenization has emerged as the key institutional focus in 2025, with BlackRock and JPMorgan actively developing projects in the sector, and expect it to grow bigger in 2026.

Read Next: 

• Is Crypto Really Dead — Or Just Losing Its Separate Identity?

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Photo courtesy: Shutterstock