Tokenized securities in only three paragraphs

16 sept 2023

When talking about financial instruments known as securities, 'security' refers to a transferable and interchangeable financial asset carrying monetary worth. A security may stand for company equity, a debt obligation or a stake in a fund. Tokenization is the procedure of converting an asset into a digital token that is then stored on a decentralized database known as a blockchain. Consequently, tokenizing a security involves converting that security into a digital format and storing it on a blockchain network. Once this digital representation is stored on a blockchain, it can be exchanged similarly to other crypto assets.

Tokenized securities are interchangeable, negotiable, and readily accessible, positioning them well for broad acceptance. The top three categories of tokenized securities are Tokenized Equity, Tokenized Debt and Tokenized Real Estate.

Tokenized equity and debt

share similarities with their traditional counterparts but may also have distinct differences. Depending on the jurisdiction and the type of security, Owning tokenized equity and debt may not give the investor an ownership interest in the actual underlying asset, such as the company or credit right itself. Instead, such digital securities may offer exposure to the value of the underlying asset. Traditional stocks and bonds are usually bought through investment brokerages and are stored in those firms' databases. In contrast, tokenized versions can be bought on cryptocurrency exchanges and are stored on blockchains.

Tokenized securities

Tokenized Real Estate

Much like tokenized equity and debt, tokenized real estate is digital and traded via blockchain using a cryptocurrency exchange. The types of ownership rights that holders have are outlined by the token's terms. Although these can vary widely, the most common ownership rights in the EU's real estate tokens are:

  • A stake in a company that owns the real property
  • A share in debt backed by the real property
  • A portion of the profits generated from the real property
Entra en la nueva economía tokenizada

Entra en la nueva economia tokenizada

Token City es el puente definitivo hacia a la economía tokenizada (tEconomy), en la que las empresas tokenizadas (tEnterprises) crean sus mercados de cripto activos (tMarkets), abiertos a inversores globales (tCitizens).

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