Types of Tokens in Asset Tokenization

Types of Tokens in Asset Tokenization: Data-Rich Tokenization using Stobox Oracle for real-time data integration.

The selection of a token type is one of the most critical steps in the tokenization process. The type of token determines:

• The rights and benefits granted to investors.

• Regulatory classification and compliance requirements.

• How ownership, income, and governance are structured.

• The ability to integrate real-time data using Stobox Oracle for Data-Rich Tokenization.

This step ensures that the token structure aligns with the business model, investor expectations, and legal framework applicable to the project.

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Security Tokens (Regulated Investment Tokens)

Security tokens represent ownership, debt, or revenue-sharing rights in an underlying asset or business. They are regulated under securities laws and typically require compliance with financial regulators such as SEC (U.S.), ESMA (EU), FCA (UK), MAS (Singapore), or ADGM (UAE).

Common Security Token Types

Token Type	Description	Use Case
Equity Token (Common Stock Token)	Represents ownership in a company with voting rights and dividends.	Business Equity Sale Model
Preferred Stock Token	Grants priority over common stock for dividends and liquidation but usually no voting rights.	Institutional fundraising
Revenue-Sharing Token	Provides investors with a fixed percentage of generated revenue.	Asset Enhancement & Yield Model
Profit-Sharing Token	Distributes profits after operational expenses, similar to equity but without ownership.	Business Equity Sale Model
Bond Token (Debt Token)	Represents a fixed-income investment where investors receive scheduled interest payments.	Structured Debt Issuance
Convertible Token (Hybrid Security)	Starts as a debt instrument but can be converted into equity at a later date.	Venture Capital & Growth-Stage Companies

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Utility Tokens (Non-Security, Access-Based Tokens)

Utility tokens do not represent financial ownership or investment rights but provide access to services, discounts, or voting power within an ecosystem.

Token Type	Description	Use Case
Platform Access Token	Grants holders access to a service, ecosystem, or SaaS product.	Tokenized Membership Models
Voting/Governance Token	Allows token holders to vote on decisions, governance, and operational changes.	DAOs and Tokenized Governance
Discount Token	Provides special discounts or incentives within a platform.	Loyalty and Incentive Programs

💡 Utility tokens are typically not subject to securities regulations but must be carefully structured to avoid regulatory misclassification.

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Hybrid Tokens (Mixed Security & Utility Functions)

Hybrid tokens combine investment rights (securities) with utility-based functions.

Token Type	Description	Use Case
Staking Token	Provides rewards for staking capital in a project while also representing ownership.	Tokenized Investment Platforms
Convertible Token	Initially functions as a debt token but can be converted into equity.	Business Growth Strategies
NFT Fractional Ownership Token	Represents fractionalized ownership of an NFT asset such as digital real estate or intellectual property.	Real Estate & Digital Collectibles

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Data-Rich Tokens (Using Stobox Oracle)

A Data-Rich Token is a security token that incorporates real-time asset data, enabling investors to track performance, financial health, and operational metrics directly within the token.

What Is a Data-Rich Token?

Unlike traditional securities, Data-Rich Tokens dynamically update and display real-time information such as:

✔ Asset valuation changes based on market conditions.

✔ Rental income distribution and operational revenue updates.

✔ Debt repayment tracking for bond tokens.

✔ Commodity reserve levels for commodity-backed tokens.

✔ Liquidity and staking metrics for DeFi-based models.

📡 Powered by Stobox Oracle, Data-Rich Tokens integrate with on-chain and off-chain data sources, allowing investors to see key financial and operational data inside the token metadata.

Use Cases for Data-Rich Tokens

Use Case	How Real-Time Data is Integrated
Real Estate Tokenization	Property valuation updates, rental income tracking, occupancy rate reports.
Revenue-Sharing Tokens	Live financial statements, automated dividend distributions.
Debt Tokenization (Bonds/Loans)	On-chain tracking of interest payments, debt repayment schedules.
Commodity & Resource Tokens	Proof of Reserves (PoR) integration for oil, gold, or other stored commodities.
Carbon Credit Tokens	Real-time emission offsets, certification tracking.

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Structuring Token Issuance Based on the Business Model

Each tokenization model requires a specific type of token issuance.

Tokenization Model	Recommended Token Type	Investor Rights
Asset Sale Model	Equity Token (Asset-Backed Token)	Ownership stake, rental income share.
Business Equity Sale Model	Equity Token (Common Stock Token)	Voting rights, dividend distributions.
Asset Enhancement & Yield Model	Revenue-Sharing Token	Share in upgraded asset revenue.
Distressed Asset Reconstruction Model	Hybrid Token (Convertible Security Token)	Convertible debt, profit-sharing.
Asset Acquisition Model	Equity or Debt Token	Ownership in acquired assets.
Structured Debt Issuance	Bond Token	Fixed-interest payments.
Decentralized Debt Financing Model	Collateralized DeFi Token	Asset-backed borrowing structure.
Commodity & Resource Tokenization Model	Commodity-Backed Token	Ownership of a fixed commodity reserve.

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Pricing, Token Supply & Distribution Strategy

Token supply and distribution should align with valuation, investor contribution, and secondary market liquidity.

Token Supply Calculation

Pricing Model	Token Price	Calculation
Fixed Supply Model	$1 per token	$10 million asset = 10 million tokens issued
Asset-Backed Model	1 token = 1 unit of asset	1 token per square foot, gold gram, or commodity unit
Revenue-Based Tokenization	Dynamic pricing model	Tied to asset-generated revenue

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Key Action Items for the Issuer

📌 Select the Right Token Type – Choose between equity, debt, utility, or hybrid tokens based on the project structure.

📌 Incorporate Stobox Oracle for Data-Rich Tokens – Define real-time data integrations for investor transparency.

📌 Structure Token Issuance Correctly – Determine whether tokens are pre-minted, gradually issued, or dynamically priced.

📌 Ensure Compliance with Securities Regulations – Align token structure with global SEC, ESMA, MiFID II, FCA, MAS, and ADGM rules.

📌 Plan for Secondary Market Liquidity – Define lock-up periods, investor restrictions, and resale mechanics.

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Selecting the right token type is critical for regulatory compliance, investor rights, and marketability. With Stobox Oracle, issuers can enhance token transparency by integrating real-time asset data into their security tokens, ensuring investor confidence, compliance, and operational efficiency.

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