What is Tokenization?
Tokenization is the process of converting rights to an asset — physical, financial, or digital — into a digital token recorded on a blockchain. The token serves as a transferable, programmable proof of ownership or claim. Tokenization sits at the intersection of finance, software, and securities law.
Categories of tokenization
- Real-World Asset (RWA) tokenization: Real estate fractional ownership, art shares, commodity-backed tokens, agriculture warehouse receipts
- Financial instrument tokenization: Bonds, equity shares, money-market funds, repo claims — often called tokenized securities or security tokens
- Native digital token: Crypto-native assets where the token IS the underlying asset (BTC, ETH)
- Utility/Payment tokens: Access rights to a network or service
- Non-fungible tokens (NFTs): Unique digital tokens representing one-of-a-kind assets
Legal classification matters
The token’s legal nature drives the regulatory regime. In Turkey under Law 7518 (2024 amendment to Capital Markets Law No. 6362), tokens that meet the definition of capital market instruments fall under SPK (Capital Markets Board) jurisdiction. Utility tokens are typically outside SPK scope but may trigger MASAK AML obligations. The classification analysis is fact-specific — assess at design time, not after launch.
Tokenization use cases (2025-2026)
- Tokenized US Treasury funds (BlackRock BUIDL, Franklin FOBXX, Ondo)
- Real estate fractional investment (Propy, RealT)
- Private credit tokenization (Centrifuge, Maple)
- Tokenized money-market funds
- Carbon credit tokenization
Practical implications for Turkish founders
For a Turkish-launched tokenization platform: (1) classify each token type against Law 6362 + Law 7518 + MASAK rules; (2) consider SPK regulatory sandbox; (3) for cross-border issuance, layer EU MiCA, US Howey, and UK FSMA analyses. Vircon Legal advises on classification, prospectus exemption, and ongoing reporting — see our Investment Management practice.