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Fractional ownership

Fractionalization divides an asset or associated rights into smaller units. In tokenization, tokens represent those units. A holder may have a claim against an issuer or a stake in a vehicle, without automatically acquiring a share of legal ownership of the asset.

Pablo Gómez

Written by Pablo Gómez

Founder & CEO at Metlabs · Reviewed on October 11, 2026

Issuance documentation defines each unit’s rights and how payments, votes or redemptions are calculated. Technically dividing a token supply does not establish those rights.

For example, a vehicle holding a property may issue units linked to its income. A token records the unit; documentation establishes whether it represents debt, an ownership interest or a contractual claim.

Smaller units may lower minimum participation amounts. Trading depends on applicable restrictions and willing buyers. Fractionalization does not guarantee liquidity.

Sources

  1. BIS: Tokenisation in the context of money and other assets, concepts and implications

Also known as

  • Fractional ownership

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