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What is asset tokenization?

By Ben Tabas, Intrica Research · Updated · US

Answer

Asset tokenization is recording a claim on a real or financial asset, such as a bond, fund share or stock, as a token on a programmable blockchain. The BIS Annual Economic Report of June 29, 2025 defines it as recording claims that exist on a traditional ledger onto a programmable platform. RWA.xyz, checked Oct. 28, 2026, shows $39.33 billion in distributed tokenized asset value.

How it works

An issuer, or a third party holding the asset, creates tokens that each stand for a unit of it. Ownership is recorded on a blockchain, and smart contracts can enforce who may hold or transfer the token.

The BIS says programmability lets actions run when set conditions are met. Atomic settlement means each leg of a transfer happens only when the others do (BIS, June 29, 2025).

RWA.xyz, checked Oct. 28, 2026, shows $39.33 billion in distributed asset value and $374.64 billion in represented asset value. Its largest tokenized U.S. Treasury funds include USDY at $2.38 billion, USYC at $2.37 billion and BUIDL at $2.19 billion.

The rules in the U.S.

  • Tokenized securities are still securities. SEC Commissioner Hester Peirce said so on July 9, 2025, and the same legal requirements apply onchain and offchain.
  • A token issued by a third party may be a receipt for a security, or a security-based swap that retail investors cannot trade off exchange, per the same statement.
  • The SEC and CFTC joint interpretation of March 17, 2026 treats tokenized stocks and bonds as digital securities, per Jenner & Block on March 20, 2026.
  • On Sept. 17, 2026, the SEC issued a temporary exemption that lets Tokenized Securities Venues trade tokenized NMS stock. It expires five years after publication and caps the number of symbols and the volume traded, per SEC press release 2026-90.

What it means for a crypto company

  • A venue trading tokenized U.S. stock under the exemption must confirm the tokens give holders the same rights as the underlying shares, per the SEC on Sept. 17, 2026.
  • Before listing a stock tokenized by an unaffiliated third party, the venue must give the stock's issuer written notice and a chance to object.
  • The venue's smart contracts must be auditable, public and deployed on a public, permissionless ledger, and trading halts when the underlying stock halts.
  • Issuers of tokenized funds and bonds face the same legal requirements as offchain versions, per Commissioner Peirce's statement.

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Sources

  1. III. The next-generation monetary and financial system · Bank for International Settlements, Annual Economic Report 2025, June 29, 2025Supports: The definition of tokenisation and its programmability and atomic settlement features.
  2. RWA.xyz dashboard · RWA.xyz, Oct. 28, 2026Supports: Checked Oct. 28, 2026: distributed and represented tokenized asset value and the largest tokenized Treasury funds.
  3. Enchanting, but Not Magical: A Statement on the Tokenization of Securities · U.S. Securities and Exchange Commission, Commissioner Hester M. Peirce, July 9, 2025Supports: Tokenized securities are still securities, and third party tokens may be receipts or security-based swaps.
  4. SEC press release 2026-90: innovation exemption for trading tokenized NMS stock · U.S. Securities and Exchange Commission, Sept. 17, 2026Supports: The temporary exemption for Tokenized Securities Venues, its five year term and its conditions.
  5. SEC and CFTC Issue Landmark Joint Interpretation on Crypto Asset Classification · Jenner & Block, March 20, 2026Supports: Tokenized versions of stocks and bonds are digital securities under the March 17, 2026 interpretation.

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General information, not legal advice.

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