Asset Tokenization in Financial Markets 2025

Contents9 Select the tabs to cycle between textsFoundational key concepts FIGURE 2 Tokenization models Off-chain On-chainMODEL Purpose Component(s) Issuance Asset is issued off-chain Asset is issued off-chain Token is issued on-chain Driven by issuer credibility Driven by issuer credibility Evidenced by on-chain records Recorded on-chainEvidenced by off-chain records Recorded off-chain Qualified custodian Qualified custodian Flexible custodial arrangements No token Token may be redeemable for the reference asset or its par value Physical gold (commodity) Public equitiesToken is issued on-chain Driven by issuer credibility Evidenced by on-chain records Recorded on-chain Flexible custodial arrangements No reference asset Sovereign digital bondsProof of value Proof of ownership Proof of transaction Custody Redemption ExampleTo allow investors to trade, hold and settle off-chain Conventional asset Reference asset Token TokenTo allow investors to trade, hold and settle on-chain, with the ability to redeem the underlying reference assetTo allow investors to trade, hold and settle on-chainCONVENTIONAL BACKED TOKEN NATIVE TOKEN