Tokenisation 101: What Are the Different Types of Tokenised Assets?

Tokenisation is becoming one of the more closely watched developments in financial markets. From bonds and investment funds to real estate and intellectual property, a growing range of assets are being explored for representation in digital token form.

But there is one important point to understand at the outset:

Not all tokenised assets are the same.

A token can represent a financial security, an interest in a physical asset, a fund unit, a claim on future cash flows or certain rights associated with an asset. What the token actually represents depends on the underlying asset and the legal and financial structure behind it.

The Bank for International Settlements (BIS) broadly describes tokenisation as generating a digital representation of traditional assets on a programmable platform. These tokens can represent financial assets as well as physical assets such as real estate.

1. Tokenised Bonds and Other Debt Securities

One of the more established areas being explored is the tokenisation of debt instruments.

A bond represents a borrowing arrangement between an issuer and investors. In a tokenised bond, the bond or the relevant rights associated with it are represented digitally on a blockchain or other programmable platform.

The economic structure can remain familiar:

Issuer → Raises capital → Pays interest → Repays principal

What changes is the infrastructure used to represent, transfer and potentially service the security.

Tokenised government and corporate bonds are already being explored in several markets. BIS research notes that the market remains at an early stage, while highlighting potential benefits around efficiency and settlement.

For investors, however, a tokenised bond remains a bond in terms of its fundamental investment considerations. Credit risk, interest-rate risk, maturity and liquidity still matter.

2. Tokenised Investment Funds

Investment funds are another area where tokenisation is being explored.

A traditional investment fund pools money from investors and invests it according to a defined strategy. Investors receive units or shares representing their interest in the fund.

With tokenisation, those interests can potentially be represented as digital tokens.

This could allow parts of the fund lifecycle — such as subscriptions, transfers, ownership records and certain servicing activities — to be managed through programmable infrastructure.

The Monetary Authority of Singapore, for example, has developed a framework addressing the tokenisation of fund activities and on-chain share registers.

The important distinction is that tokenisation does not turn the fund into a cryptocurrency. The token represents an interest in the underlying fund, subject to the structure and applicable regulations.

3. Tokenised Real Estate

Real estate is another frequently discussed application.

A property is a physical asset, but ownership and economic interests in it are traditionally recorded through legal documents and property registries.

Tokenisation can create a digital representation of an ownership interest or other defined economic interest associated with the property.

For example, instead of one investor acquiring an entire property, a structure could potentially allow multiple eligible investors to hold tokens representing defined interests in the underlying asset.

This is where the idea of fractionalisation often enters the conversation.

However, tokenisation and fractionalisation are not the same thing.

An asset can be tokenised without necessarily being divided into smaller ownership interests. Whether fractional ownership exists depends on the structure of the offering.

Real-estate tokenisation is still an emerging market, with its effectiveness depending on factors such as legal ownership, liquidity, valuation and the mechanisms connecting the digital token to the underlying property.

4. Tokenised Commodities

Physical commodities such as gold are also being explored for tokenisation.

In a typical structure, a token may represent a defined interest in an underlying commodity held by a custodian or another entity.

For example, a token could represent a specified quantity of gold held in physical form.

The important question is not simply: “Is this token backed by gold?”

It is: “What legal claim does the token holder actually have to that gold?”

That could involve ownership, a beneficial interest, a claim against an issuer or another contractual arrangement.

This is why understanding the underlying legal structure is just as important as understanding the blockchain technology.

5. Tokenised Deposits and Money

Tokenisation is not limited to investment assets.

Money and bank deposits can also be represented through tokenised forms.

A tokenised deposit, for example, can represent a claim on a commercial bank, with the digital representation operating on a programmable platform.

This is different from a cryptocurrency.

The BIS has highlighted tokenised commercial bank money, tokenised central bank reserves and tokenised financial assets as components that could potentially operate together on programmable financial infrastructure.

The distinction matters because the underlying claim, issuer and legal framework determine what the digital token represents.

6. Tokenised Intellectual Property

Tokenisation is also moving beyond conventional financial assets.

Intellectual property can include:

Music cataloguesFilm and entertainment rightsCharacter rightsLicensing rightsRoyaltiesOther commercially valuable creative assets

In these cases, the token does not necessarily mean that the person holding it owns the underlying intellectual property. Instead, the token could represent a defined economic interest, revenue share, licensing right or another contractual benefit, depending on the structure.

For example, an entertainment company could potentially create a structure around the future economic value generated by a music catalogue and represent certain interests through tokens.

This creates an intersection between intellectual property, finance and blockchain infrastructure.

7. Tokenised Private Market Assets

Private assets can be difficult to access because they are often less liquid and involve more complex ownership and transfer processes than publicly traded securities.

Tokenisation is being explored for assets such as:

Private company interestsPrivate creditVenture capital interestsPrivate equity fundsOther alternative investments

A token could represent an interest in the underlying asset or investment vehicle. One potential attraction is that programmable infrastructure may simplify parts of the ownership and transfer process. However, tokenisation does not automatically make a private asset liquid. There still needs to be a functioning market, eligible participants and a mechanism through which tokens can be transferred or sold.

8. Tokenised Carbon Credits and Environmental Assets

Carbon credits and other environmental assets are another emerging area.

A carbon credit generally represents a defined environmental claim associated with a project or activity.

Tokenisation can provide a digital representation of such credits and potentially make tracking, transfer and record-keeping more programmable.

The technology may help address issues around transparency and traceability, but the quality and credibility of the underlying environmental asset remain critical.

A token cannot, by itself, make an environmental claim more credible.

9. Tokenised Receivables and Future Cash Flows

Another interesting application involves financial claims that are based on future payments.

Consider a company that is owed money by customers or businesses.

Instead of waiting for those receivables to be collected, a financial structure could potentially represent an interest in those future cash flows through tokens.

Similar structures could potentially be explored around:

RoyaltiesInvoicesTrade receivablesRental incomeOther contractual cash flows

Here, the token represents an economic claim linked to future payments rather than ownership of a physical object.

This is an important distinction because what is being tokenised may be a right to receive cash rather than the asset that generates the cash.

A Simple Way to Understand the Different Types

The easiest way to think about tokenised assets is to start with the underlying asset.

The exact structure can vary significantly. Two tokens that look similar technologically may represent completely different rights legally and economically.

Tokenised Asset Does Not Mean Cryptocurrency

This distinction is worth repeating.

A tokenised asset and a cryptocurrency are not automatically the same thing.

A cryptocurrency is generally created as a digital asset in its own right. A tokenised asset, on the other hand, is generally intended to digitally represent an existing asset, financial claim or defined economic interest.

For example:

Bitcoin → Digital-native asset

Tokenised bond → Digital representation of a bond or related claim

Tokenised real estate → Digital representation of a defined interest linked to property

The underlying economics and legal rights are therefore fundamentally different.

What Determines the Value of a Tokenised Asset?

Tokenisation does not create value on its own. The value of the token ultimately depends on what it represents.

For a tokenised bond, factors such as the issuer's creditworthiness, coupon and market interest rates matter.

For tokenised real estate, property value, rental income and market conditions can matter.

For tokenised intellectual property, the commercial performance of the underlying IP can be important.

This is why investors should always move beyond the technology and ask:

What is the underlying asset?What rights does the token represent?Who is responsible for the underlying asset?How can the token be transferred or redeemed?What happens if something goes wrong?

Why Does the Type of Tokenised Asset Matter?

Different assets have different characteristics.

A bond has a maturity and repayment structure.

A property is physical and generally less liquid.

A fund represents a portfolio of assets.

A music catalogue can generate uncertain future revenues.

A receivable represents a contractual payment obligation.

Tokenisation can provide a common digital infrastructure for representing these different assets, but it does not make their underlying risks identical.

This is why the phrase “tokenised asset” should never be treated as a single investment category.

It is better understood as a technology-enabled way of representing different types of assets and claims.

The Bigger Question: What Exactly Are You Buying?

As tokenisation expands into more areas of finance and the real economy, the most important question may not be whether an asset is “onchain”.

It is what the token actually represents.

The technology can provide digital records, programmability and potentially more efficient ways of transferring and servicing assets. BIS research has highlighted the potential for tokenisation to integrate asset records with rules governing transfers and automate parts of financial transactions.

But the legal structure, underlying asset, cash flows, governance, liquidity and investor rights remain fundamental.

For anyone exploring tokenised assets, the starting point should therefore be simple:

Understand the asset first. Then understand the token.