Tokenization in finance represents an asset, such as a bond, a fund share, or a deposit, or a claim on it, as a token on a blockchain. The asset keeps its legal form. An issuer sets up a structure that links each token to the asset, deploys a token contract with the transfer rules the asset requires, and keeps the onchain record in line with the asset through issuance, transfers, servicing, and redemption.
Last updated: September 28, 2026.
What are the steps in tokenizing an asset?
The process follows the life of the asset, from structuring to redemption.
| Stage | What happens | Typically involved |
|---|---|---|
| Structuring | Decide what the token represents, such as direct ownership or a claim | Issuer and legal counsel |
| Custody | Where there is a separate underlying asset, it is held to back the tokens | Custodian or fund administrator |
| Issuance | The token contract is deployed and tokens are minted to eligible holders | Issuer and transfer agent |
| Transfers | Tokens move onchain, subject to the contract's transfer rules | Token contract |
| Servicing | Interest, distributions, and other events are applied to holders | Administrator or paying agent |
| Redemption | Tokens are burned and the holder receives the underlying or cash | Issuer |
Servicing is where much of the ongoing work sits. The corporate actions across chains overview covers what happens when those events reach holders on several networks.
What is real-world asset tokenization?
A real-world asset, or RWA, is an asset whose value exists outside the blockchain. Tokenizing it means creating a token linked to that asset through the steps above, so the token can move and be used in blockchain applications while the asset itself stays where it is held.
Some securities are instead issued directly as tokens, where the legal framework allows it. In that case the onchain record is the official record of ownership rather than a mirror of an offchain one.
What does the blockchain record, and what stays offchain?
The blockchain records holder balances, transfers, and the rules the token contract enforces, such as allowing only approved addresses to hold it. The legal agreements, the underlying asset, and investor identity data stay offchain. Values that change outside the chain, such as a fund's net asset value, have to be brought onchain by the issuer or a data provider.
Tokenization is also separate from distribution. Creating the token is one step, and making it available on the networks where holders are is another. Tokenization vs token distribution explains the difference, and cross-chain tokenized assets covers how one asset can be held on several networks.
FAQ
Does tokenization change the asset itself?
Tokenization changes how ownership or a claim is recorded and transferred, not the type of asset. What a holder is entitled to depends on the legal documents behind the token and the law that applies to them.
Who can hold a tokenized asset?
The issuer's terms and the rules that apply to the asset decide. Many tokenized securities limit holding to eligible investors and enforce that limit in the token contract.
Can a tokenized asset exist on more than one blockchain?
Yes. An issuer can make the same asset available on several networks, as long as total supply and the transfer rules stay consistent across them.
Plan the asset's lifecycle
For a planned or existing tokenized asset and the networks it needs to reach, request a custom briefing.