Defining the Asset Class and the Underlying Asset
In this step, you will clearly identify what asset you are tokenizing, both from a legal classification standpoint and in terms of the specific item or collection of assets that will back your token. This two-part decision is essential for determining regulatory treatment, documentation requirements, and how the token will function in the market.
You will make two core decisions:
Select the Asset Class – the broad legal and financial category under which your tokenized product falls.
Identify the Underlying Asset – the actual object, entity, or right that your tokens represent or are backed by.
Selecting the Asset Class
Choose the category that best reflects the nature of the asset you intend to tokenize:
Carbon Credits – Environmental units used to offset carbon emissions, traded in voluntary or compliance markets.
Collectibles – Unique, high-value items such as art, rare wines, vintage cars, or cultural artifacts.
Contractual Rights – Legally binding rights such as revenue-sharing agreements, licenses, or lease obligations.
Debt – Loans, bonds, or other financial obligations that represent money owed by an entity.
Equity – Ownership interest in a company, including voting and dividend rights.
Intellectual Property – Legal rights over creations such as patents, trademarks, copyrights, and trade secrets.
Land – Parcels of undeveloped or partially developed real estate.
Mineral Rights – Rights to explore, extract, and profit from natural resources below the surface.
Private Securities – Shares or instruments in companies not listed on public exchanges.
Public Securities – Tradable instruments such as listed stocks or government-issued bonds.
Real Estate – Residential, commercial, or industrial properties that generate income or appreciate in value.
Commodities – Physical goods like metals, grains, or oil that are traded globally.
Derivatives – Financial instruments whose value is derived from an underlying asset or index.
Structured Products – Customized investment products combining multiple financial instruments and risk profiles.
Define the Underlying Asset
Now select the specific asset being tokenized. This is the actual asset that tokens will represent or be backed by:
Account Receivables – Outstanding invoices or payment obligations owed by customers.
Agricultural Commodities – Crops or produce like wheat, soybeans, or coffee, held as tradable assets.
Agricultural Land – Farmland used for cultivation, livestock, or agro-industrial purposes.
Art – High-value physical artwork, including paintings, sculptures, or digital art.
Base Metals – Industrial-use metals such as copper, zinc, or nickel, often stored in reserves.
Business Revenue – A share of a company’s gross or net revenue, tokenized for investor distribution.
Cars – Tokenized vehicles, including collectible, luxury, or revenue-generating fleets.
Carbon Credits – Verified offset units traded in climate and sustainability markets.
Commercial Real Estate – Office buildings, shopping centers, or mixed-use developments.
Corporate Bonds – Debt issued by private or public companies, typically offering fixed income.
Copyright – Rights to reproduce, distribute, or profit from creative works.
Derivatives – Swaps, options, or futures linked to the performance of other assets.
Energy Resources – Tokenized ownership of oil, gas, or renewable energy projects.
Equity – Ownership interest in a company, including voting and dividend rights.
Gemstones – Tokenized holdings of diamonds, emeralds, or other precious stones.
Government Bonds – Sovereign debt instruments with periodic returns.
Industrial Commodities – Materials like steel, rubber, or chemicals used in manufacturing.
Intellectual Property – Encompasses legally protected creations such as patents and trademarks.
Inventory – Physical goods stored for sale or distribution.
Mineral Rights – Rights to mine and sell subsurface resources like gold, lithium, or oil.
Natural Resource Royalties – Rights to revenue streams from natural resource extraction.
Patents – Exclusive rights to produce or license a unique invention.
Precious Metals – Gold, silver, platinum, or other high-value metals held as stores of value.
Private Securities – Equity or convertible instruments in unlisted companies.
Public Securities – Tokenized representation or mirroring of listed financial assets.
Residential Real Estate – Apartments, villas, or single-family homes intended for rental or sale.
Royalties – Income rights from intellectual property, media, or natural resource projects.
Structured Products – Hybrid financial vehicles offering customized risk-return exposure.
Urban Land – City-based land suitable for development or long-term investment.
Note: The combination of asset class and underlying asset will guide the legal documents you’ll need to provide, the valuation method applied, and the compliance strategy we implement. This classification also determines whether your token will be recognized as a security, commodity, or another regulated financial product.
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