AI-Powered Valuation for Tokenized Assets: Price Illiquidity with Precision
Stop relying on slow, subjective, and costly traditional appraisals.
Our AI models deliver real-time, data-driven valuations to unlock the full potential of your tokenized real-world assets.
The Valuation Gap in the Tokenization Revolution
Tokenizing real-world assets like real estate, private equity, and fine art is revolutionizing investment by promising unprecedented liquidity. However, this promise remains unfulfilled without a critical component: accurate, real-time valuation. Traditional appraisal methods are slow, expensive, and subjective, creating a bottleneck that prevents tokenized assets from reaching their full potential. This valuation gap introduces risk, hinders price discovery, and deters institutional investors. The solution isn't just tokenization; it's intelligent tokenization, powered by AI that can price illiquid assets dynamically and defensibly, finally bridging the gap between potential and reality.
Why Partner with Errna for AI-Powered Valuation?
Unmatched Accuracy
Our AI models are trained on vast, multi-modal datasets, including market transactions, economic indicators, and alternative data. This allows us to deliver valuations with higher precision and lower error rates than traditional methods, giving you a true, defensible understanding of asset worth.
Real-Time Speed
Go from weeks to minutes. Our automated valuation models (AVMs) provide on-demand pricing, enabling dynamic portfolio management, instant price discovery for marketplaces, and faster deal execution. Capitalize on opportunities as they arise, not after they've passed.
Drastic Cost Reduction
Eliminate the high costs associated with manual appraisals and due diligence. Our AI-driven platform automates the valuation process, reducing operational overhead by up to 70% and allowing you to reallocate resources toward growth and strategy.
Built-in Compliance
Navigate complex regulatory landscapes with confidence. Our systems are designed with auditable data trails and transparent model logic, simplifying reporting for frameworks like IFRS 13, ASC 820, and other fair value standards. We turn compliance from a burden into a streamlined process.
Enterprise Scalability
Whether you're valuing a single property or a portfolio of thousands of diverse assets, our cloud-native infrastructure scales to meet your needs. Our API-first approach ensures you can process high volumes of valuation requests without performance degradation.
Seamless Integration
Our valuation engines are not standalone silos. We provide robust APIs that integrate directly into your existing portfolio management systems, trading platforms, and blockchain oracles, ensuring a smooth, uninterrupted workflow and a single source of truth.
Multidisciplinary Expertise
We are more than just data scientists. Our team combines deep expertise in finance, real estate, econometrics, and blockchain technology. This holistic understanding ensures our models are not only technically sound but also commercially and financially relevant.
Bank-Grade Security
Your data is your most valuable asset. We employ end-to-end encryption, secure cloud infrastructure (SOC 2, ISO 27001), and rigorous access control protocols to ensure your proprietary information remains confidential and protected at all times.
Forward-Looking Insights
Our service goes beyond current valuation. We leverage predictive analytics to forecast future value trends, perform scenario analysis, and identify potential risks and opportunities, empowering you to make proactive, data-informed investment decisions.
Our AI Valuation Services for Tokenized Assets
We offer a comprehensive suite of AI-powered valuation services designed to bring clarity, speed, and trust to the world of tokenized real-world assets. Our solutions are tailored to specific asset classes and integrate seamlessly into your digital asset strategy.
AI-Powered Real Estate Valuation
Get granular, real-time valuations for commercial and residential properties. Our models analyze everything from satellite imagery and local market trends to zoning laws and foot traffic data to provide a hyper-accurate price point for tokenized real estate assets.
- Improve Loan-to-Value (LTV) Accuracy: Enhance lending decisions with precise, data-driven collateral valuation.
- Enable Dynamic Rent Pricing: Use predictive analytics to optimize rental income based on real-time market conditions.
- Accelerate Due Diligence: Reduce the time for property acquisition and underwriting from weeks to hours.
Private Equity & VC Portfolio Valuation
Value illiquid stakes in private companies with confidence. Our AI analyzes company financials, industry benchmarks, funding rounds, and market sentiment to provide defensible fair value assessments for LP reporting and secondary market trading.
- Automate Quarterly Reporting: Streamline the valuation process for investor communications and regulatory filings.
- Identify Exit Opportunities: Model potential exit scenarios and valuations to optimize fund performance.
- Support Secondary Trading: Provide a reliable price foundation for tokenized shares traded on secondary platforms.
Fine Art & Collectibles Appraisal Engine
Objectively value unique, high-value assets like fine art, classic cars, and rare watches. Our AI uses image recognition, provenance analysis, auction data, and artist trends to determine the fair market value for fractionalized ownership.
- Increase Market Transparency: Bring data-driven pricing to a traditionally opaque market.
- Facilitate Collateralized Lending: Use verifiable valuations to secure loans against high-value collectibles.
- Build Investor Confidence: Attract new capital by providing clear, objective valuation metrics.
Dynamic Valuation APIs for Marketplaces
Power your tokenized asset marketplace with real-time pricing data. Our robust APIs deliver on-demand valuations, enabling accurate order book management, margin calculations, and transparent price discovery for traders and investors.
- Ensure Fair Market Pricing: Prevent price manipulation and ensure a level playing field for all participants.
- Enhance Platform Liquidity: Attract market makers and institutional traders with reliable, continuous pricing data.
- Reduce Operational Risk: Automate margin calls and liquidations based on accurate, real-time asset values.
Predictive Cash Flow Modeling
Go beyond static valuation by forecasting the future income potential of assets. Our AI models future cash flows for assets like commercial real estate or infrastructure projects, providing a forward-looking view of value.
- Optimize Investment Strategy: Make decisions based on projected ROI and long-term asset performance.
- Improve Risk Assessment: Identify potential downturns in cash flow before they impact value.
- Structure Better Deals: Use future income projections to negotiate more favorable terms for acquisitions and financing.
Automated Compliance & Reporting
Generate audit-ready valuation reports automatically. Our platform documents all data inputs, model assumptions, and valuation outputs, creating a transparent and defensible record for regulators, auditors, and investors.
- Meet Fair Value Accounting Standards: Simplify compliance with IFRS 13 and ASC 820 regulations.
- Reduce Audit Costs: Provide auditors with a clear, verifiable data trail, minimizing manual review time.
- Enhance Investor Trust: Deliver professional, transparent valuation reports that build confidence in your management.
Scenario Analysis & Stress Testing
Understand how your asset portfolio would perform under various market conditions. Our AI can simulate the impact of economic shifts, interest rate changes, or black swan events on asset values, helping you manage risk proactively.
- Quantify Portfolio Risk: Move from qualitative risk assessment to quantitative, data-driven insights.
- Optimize Hedging Strategies: Identify key vulnerabilities and implement effective measures to protect your portfolio.
- Satisfy Regulatory Requirements: Meet regulatory demands for robust stress testing and capital adequacy planning.
Liquidity Premium Calculation
Accurately price the discount or premium associated with an asset's liquidity. Our models quantify the "illiquidity discount" for non-tokenized assets and can model the potential "liquidity premium" as an asset becomes more easily tradable through tokenization.
- Justify Valuation Adjustments: Provide a data-backed rationale for liquidity-based pricing changes.
- Measure the ROI of Tokenization: Quantify the value added by increasing an asset's liquidity.
- Inform Trading Strategies: Identify arbitrage opportunities based on discrepancies in liquidity pricing.
Custom Model Development & Training
For unique or complex asset classes, we develop and train bespoke AI valuation models. We work with your proprietary data and subject matter experts to build a model that captures the specific nuances of your assets.
- Gain a Competitive Edge: Develop a proprietary valuation capability that your competitors cannot replicate.
- Value Niche Assets: Create accurate pricing models for assets with no established market or benchmarks.
- Own Your Intellectual Property: Retain full ownership of the custom-built models and algorithms.
Data Aggregation & Cleaning Services
A great model is built on great data. We provide services to aggregate, clean, and structure the diverse datasets required for accurate valuation, ensuring your AI models are trained on reliable, high-quality information.
- Improve Model Accuracy: Eliminate the "garbage in, garbage out" problem by starting with a pristine dataset.
- Save Internal Resources: Offload the time-consuming task of data engineering to our expert team.
- Unlock New Data Sources: Leverage our expertise in sourcing and integrating alternative and unstructured data.
Smart Contract Integration for Valuation Oracles
Bridge the off-chain and on-chain worlds. We integrate our AI valuation engines with blockchain oracles, allowing smart contracts to securely and reliably access real-world asset values for DeFi protocols, collateralized loans, and automated asset management.
- Enable On-Chain Finance: Allow DeFi applications to interact with real-world asset values.
- Automate Collateral Management: Trigger automated liquidations or margin calls based on real-time oracle data.
- Enhance Trust and Security: Provide a tamper-proof, reliable feed of external data to the blockchain.
RWA Data Feeds
Subscribe to our curated, real-time data feeds for various Real-World Asset (RWA) classes. Power your internal analytics, trading algorithms, or risk management systems with high-quality, pre-processed valuation data delivered via API.
- Accelerate Time-to-Market: Access ready-to-use valuation data without building your own models.
- Enrich Internal Datasets: Augment your own data with our comprehensive market insights.
- Benchmark Your Own Valuations: Validate your internal models against our independent, AI-driven data.
ESG Scoring for Asset Valuation
Incorporate Environmental, Social, and Governance (ESG) factors into your valuation models. Our AI analyzes non-financial data to generate an ESG score that can be used to adjust valuations and align portfolios with sustainability mandates.
- Meet Investor Demand: Cater to the growing demand for ESG-conscious investment products.
- Identify Hidden Risks: Uncover potential risks related to climate change, social issues, or poor governance.
- Enhance Asset Attractiveness: Highlight positive ESG characteristics to attract a wider pool of capital.
Fractional Ownership Value Tracking
Provide transparent, real-time value updates to all fractional owners of a tokenized asset. Our platform tracks the overall asset value and automatically calculates and displays the corresponding value of each individual token or share.
- Increase Investor Engagement: Give investors a live view of their portfolio's performance.
- Simplify Cap Table Management: Automate the tracking of ownership stakes and their corresponding values.
- Build Trust and Transparency: Foster a strong relationship with investors through clear and continuous communication.
Digital Twin Valuation
Create a dynamic, data-rich digital twin of your physical assets. By modeling an asset's physical condition, operational data, and maintenance history, our AI provides a valuation that reflects its true current state and future potential, not just its market comps.
- Enable Predictive Maintenance: Forecast equipment failure and its impact on asset value.
- Optimize Operational Efficiency: Model how operational changes can enhance an asset's long-term value.
- Achieve Unprecedented Accuracy: Base valuations on the unique, real-time condition of the specific asset.
Our 4-Step Valuation Modernization Process
1. Discovery & Data Integration
We start by understanding your specific asset class, valuation challenges, and business goals. Our data engineers then work with you to securely integrate your internal data sources and connect to our vast library of external market and alternative data feeds.
2. AI Model Selection & Customization
Based on your asset type, we select the optimal machine learning models from our proprietary library. We then fine-tune these models with your specific data, ensuring they capture the unique value drivers relevant to your portfolio.
3. Validation & Backtesting
Transparency and trust are paramount. We rigorously backtest our models against historical data and benchmark their performance against traditional appraisal methods. We provide a full validation report, so you can see exactly how our AI performs and understand its logic.
4. Deployment & Continuous Learning
We deploy the validated model via a secure API or a user-friendly dashboard. The process doesn't stop there; our models continuously learn from new market data, ensuring your valuations remain accurate and relevant over time.
Success Stories: AI Valuation in Action
REIT Increases Portfolio Value by 15% with AI-Driven Property Valuation
Client Overview
A publicly-traded Real Estate Investment Trust (REIT) with a $5 billion portfolio of commercial properties across North America. They faced challenges with slow, inconsistent valuations from third-party appraisers, which delayed acquisitions and created uncertainty for investors.
The Problem
The REIT's reliance on manual appraisals, conducted quarterly, meant their portfolio value was often out of sync with the fast-moving market. This led to missed acquisition opportunities and an inability to accurately report Net Asset Value (NAV) on a more frequent basis.
Key Challenges
- Inconsistent valuation methodologies across different appraisal firms.
- Valuation reports taking 4-6 weeks to complete.
- High annual costs for manual appraisals across the entire portfolio.
- Inability to perform real-time scenario analysis for potential market shifts.
Our Solution
We deployed our AI-Powered Real Estate Valuation platform, integrating the REIT's internal property data with our real-time market data feeds. The solution provided:
- A unified valuation model for all properties, ensuring consistency.
- On-demand valuation updates, accessible via a secure dashboard.
- Predictive analytics to forecast rental income and occupancy rates.
- An automated reporting module for investor and regulatory filings.
"Errna's AI platform transformed our valuation process from a reactive, costly exercise into a proactive, strategic advantage. We now make smarter, faster decisions with a level of confidence we never had before."
- Michael Brooks, CFO, a Commercial REITPrivate Equity Firm Cuts Valuation Costs by 70% for Portfolio Companies
Client Overview
A mid-market private equity firm with $2 billion AUM, specializing in growth-stage technology and manufacturing companies. They struggled with the complexity and cost of valuing their diverse portfolio of illiquid, private companies for quarterly LP reporting.
The Problem
Each portfolio company required a bespoke, time-consuming valuation process involving multiple stakeholders and expensive external consultants. This drained resources and made it difficult to provide LPs with timely, transparent performance data.
Key Challenges
- Lack of standardized data across portfolio companies.
- Difficulty in finding relevant public company comparables.
- High fees paid to third-party valuation experts.
- Pressure from LPs for more frequent and transparent reporting.
Our Solution
We implemented our Private Equity & VC Portfolio Valuation service, creating a custom AI model for the firm. The solution included:
- A data ingestion module to standardize financials from portfolio companies.
- An AI engine that analyzed industry benchmarks, transaction multiples, and macroeconomic data.
- A scenario analysis tool to model different exit strategies.
- An automated report generator for LP communications.
"The efficiency gains were immediate. What used to take a team of analysts weeks can now be done in days, with greater accuracy. Errna has become an indispensable part of our operations and investor relations."
- Sarah Jenkins, Partner, a PE FirmArt Fund Achieves Real-Time Pricing for Tokenized Masterpieces
Client Overview
An innovative investment fund specializing in the fractional ownership of blue-chip fine art. They tokenized shares of masterpieces, but needed a way to provide a credible, real-time market price for these tokens to facilitate trading.
The Problem
The art market is notoriously opaque, with prices typically only set at infrequent auctions. To create a liquid secondary market for their art-backed tokens, the fund needed a continuous, data-driven valuation mechanism that investors could trust.
Key Challenges
- Infrequent and non-standardized sales data.
- The subjective nature of art appraisal.
- Need for a valuation oracle to feed prices to their trading platform.
- Building investor confidence in a new, digitally-native asset class.
Our Solution
We developed a bespoke Fine Art & Collectibles Appraisal Engine. The solution leveraged:
- AI-powered analysis of over 20 years of auction records and private sales data.
- Image recognition to analyze stylistic elements and artist signatures.
- Sentiment analysis of art world news and social media trends.
- A secure API to serve as a blockchain oracle, feeding prices to their smart contracts.
"Errna didn't just give us a valuation tool; they gave us the key to unlocking liquidity in the art market. Their AI oracle is the heartbeat of our trading platform, providing the trust and transparency our investors demand."
- James Carlton, Founder, an Art Investment FundTechnology & Tools We Master
AI-Powered vs. Traditional Valuation
| Feature | AI-Powered Valuation (Errna) | Traditional Appraisal |
|---|---|---|
| Speed | Minutes to Real-Time | Weeks to Months |
| Cost | Up to 70% lower, subscription-based | High, per-asset fee |
| Data Sources | Thousands of real-time market, economic, and alternative data points | Limited, historical comparable sales |
| Objectivity | Data-driven, consistent, and unbiased | Subjective, prone to individual appraiser bias |
| Frequency | On-demand, continuous updates | Static, point-in-time (e.g., quarterly) |
| Scalability | Instantly scalable to thousands of assets | Linear; more assets require more time and people |
| Auditability | Transparent, fully documented data lineage and model logic | Opaque, relies on appraiser's notes |
| Predictive Power | Includes forecasting and scenario analysis | Backward-looking only |
What Our Clients Say
"The level of detail and accuracy from their AI models is astounding. We've uncovered hidden value in our real estate portfolio that traditional methods completely missed. It's a game-changer for our investment strategy."
"As a PE firm, defensible valuation is non-negotiable. Errna provides us with audit-proof, data-driven reports that have streamlined our LP communications and significantly reduced our compliance burden. Their team understands finance as deeply as they understand AI."
"We needed a valuation oracle to power our tokenized art marketplace. Errna delivered a robust, real-time API that has become the bedrock of trust for our platform. Their integration support was seamless and professional."
"The speed is what impresses me most. We can now analyze potential acquisitions and their impact on our portfolio in a single afternoon. This agility has given us a significant competitive advantage."
"Their custom model development for our niche industrial assets was phenomenal. They took the time to understand the unique drivers of our industry and built a tool that is now central to our operational and financial planning."
"The transparency of their process builds incredible confidence. We know exactly what data is being used and how the model arrives at its conclusions. For our risk and compliance teams, this level of auditability is priceless."
Frequently Asked Questions
Our models are rigorously backtested against historical transaction data and benchmarked against traditional appraisals. In most asset classes, our models demonstrate a lower margin of error and higher correlation with final sale prices. We provide full transparency through validation reports that show the model's accuracy, confidence scores, and key value drivers, ensuring you have a defensible and reliable valuation.
We use a multi-modal data approach. This includes structured data (e.g., property records, financial statements, transaction histories), market data (e.g., economic indicators, stock market indices), and alternative data (e.g., satellite imagery, foot traffic, social media sentiment, news analysis). By combining these diverse sources, our models capture a more holistic and nuanced view of an asset's true value.
Absolutely. Data security is our highest priority. We employ bank-grade security measures, including end-to-end encryption, SOC 2 and ISO 27001 compliant cloud infrastructure, and strict access controls. Your proprietary data is used exclusively for training your specific models and is never shared or used for any other purpose.
For niche assets, we use a combination of techniques. This includes transfer learning, where we adapt models from similar asset classes, and the integration of qualitative expert knowledge into the model. We also develop custom models that can weigh factors like provenance, brand value, or specific technical attributes, allowing us to provide reliable valuations even in data-scarce environments.
We have an API-first design philosophy. Our valuation engines are exposed through well-documented, secure REST APIs that can be easily integrated into your existing portfolio management software, CRM, trading platforms, or blockchain oracles. We provide comprehensive developer support to ensure a smooth and seamless integration process.
The timeline varies based on complexity. For standard asset classes using our pre-built models, implementation can be as fast as 2-4 weeks. For custom model development that requires significant data integration and training, the timeline is typically 8-12 weeks. We work with you to define a clear project plan and timeline from the outset.
Ready to Unlock the True Value of Your Assets?
Stop guessing and start knowing. Schedule a free consultation with our AI valuation experts to discover how we can bring precision, speed, and intelligence to your tokenization strategy. Let's build a more liquid and transparent future, together.