Asset tokenisation
Also called: Real-world asset tokenisation · Topic: Financial Markets, Instruments, Insurance and Pensions · NCERT: Beyond NCERT
Meaning
Asset tokenisation means recording ownership of a real-world asset, such as a bond, a building or invoices, as digital tokens on a blockchain (a shared, tamper-resistant digital record). Each token stands for a small share of the asset. This allows fractional ownership, so many people can own pieces of a costly asset, and the tokens can be traded and settled easily. India is testing it through RBI's wholesale CBDC and tokenisation pilots and through SEBI and IFSCA regulatory sandboxes (controlled test zones). The BIS Project Agorá is also exploring it.
Example
An office building worth Rs 100 crore is split into 1 crore tokens worth Rs 100 each. A small investor buys 50 tokens, which gives them a share of the rent and lets them sell the tokens later to another investor.
Don't confuse with
- REIT (Real Estate Investment Trust): also gives small investors a share in property. It works through trust units listed on a stock exchange, not blockchain tokens.
- Non-Fungible Token (NFT): each NFT is unique. Tokens representing a tokenised asset are usually identical and can be swapped for one another.