1️⃣Asset Identification

Asset identification is the foundation of any tokenization project. Before issuing tokens, an issuer must clearly define where the asset is located, what type of asset is being tokenized, how it fits into investment classifications, and how its value is determined. These decisions directly impact regulatory compliance, investor confidence, and overall feasibility.

A well-structured asset identification process ensures that token holders receive legitimate ownership or investment rights while the issuer operates within legal and financial best practices.

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Choosing the Asset Country – Understanding the Legal & Regulatory Environment

The country where the asset is located determines how it is regulated, taxed, and whether it can be legally tokenized. Some jurisdictions have clear frameworks for security tokens, while others have restrictions on digital asset ownership and foreign investment.

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Defining the Asset Type – What Exactly is Being Tokenized?

Tokenization applies to a wide range of assets. Clearly defining the type of asset being tokenized is essential for structuring the offering, ensuring compliance, and determining investor rights.

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Selecting the Underlying Asset Class – Refining the Investment Structure

Beyond defining the asset type, it is essential to categorize which asset class it belongs to. This step refines how tokens are structured, who can invest, and how returns are distributed.

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Conducting Asset Valuation – Determining the True Value of the Asset

Valuation is critical in determining the price per token and overall market appeal. Different assets require different valuation methods to establish a fair, transparent, and investment-worthy price.

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By following these structured steps, issuers can create a secure, scalable, and well-regulated tokenized asset offering while ensuring both investor confidence and regulatory approval.