Tokenisation is when an asset outside the blockchain is issued as a TokenTokenA digital asset created with a smart contract on another cryptocurrency's blockchain, rather than on a blockchain of its own. on a blockchain. The token stands for the asset, or a claim on it, and can be held and sent like any other token. Assets like these are often called RWAs, short for real-world assets.
Examples of tokenised assets
- Government bonds and funds. In March 2024 the asset manager BlackRock launched a fund called BUIDL on Ethereum. It invests mainly in cash and short-term US government debt, its units are issued as tokens, and it is aimed at large professional investors.
- Gold. Some tokens are each meant to equal one ounce of gold held in a vault.
- Property. A property is split into many tokens so that more people can own a small share of it.
- Money. StablecoinsStablecoinA cryptocurrency designed to keep a steady price, usually by tracking the US dollar or another currency. are in effect tokenised money: dollars or euros in the form of tokens.
Benefits and limits
Tokenised assets can be sent at any time of day, settlement can take minutes instead of days, and the assets can be split into smaller units. They can also be used in DeFiDeFi (decentralised finance)Financial services, such as lending, saving and trading, that run on smart contracts on a blockchain instead of through a bank or other middleman., for example as collateral.
But a token is never more trustworthy than its issuer. The asset itself is not on the blockchain. It is held by the issuer or a custodian. If they fail, or if your legal claim to the asset is unclear, the token can be worth little even though the asset exists.
Which rules apply?
If a token gives the same rights as a share, a bond or a stake in a fund, it counts as a financial instrument. It then falls under the EU's rules for securities markets (MiFID II), not under MiCAMiCAThe EU regulation on markets in crypto-assets, in force in Iceland since 1 January 2026, which sets the same rules for crypto services across the EEA.. In Iceland those rules are set out in Act No. 115/2021 on markets in financial instruments. According to ESMA's guidelines, the technology doesn't change the classification. MiCA covers other crypto-assetsCrypto-assetThe legal term for cryptocurrencies and tokens, meaning a digital representation of value or rights that can be transferred and stored on a blockchain., such as stablecoins.
Everything in Myntkaup Learn is written and regularly reviewed by the Myntkaup editorial team. It is for education and is not investment advice. Editorial policy. Updated 18 October 2026.