❓ Is there only one way to tokenise an asset? It’s a question we get asked a lot.
The answer? Nope.
Today, the two most common approaches are native and synthetic tokenisation, each with a different structure and relationship to the underlying asset.
🔵 Native tokenisation: the token is issued directly on-chain and represents the legal share or ownership interest, making the blockchain part of the asset’s ownership infrastructure.
⚪ Synthetic tokenisation: the underlying asset remains off-chain with a custodian or intermediary, while a separate token provides economic exposure without direct legal ownership of the asset.
In simple terms:
🔵 Native = token is the asset.
⚪ Synthetic = token represents exposure to the asset.
But these aren’t the only possibilities. As the industry evolves, new tokenisation models are continuing to emerge.
Curious about how they work? Follow us for a deeper dive into the different models.