Written by Pablo Gómez
Founder & CEO at Metlabs · Reviewed on October 11, 2026
Tokenization requires defining what each unit represents: a fund unit, a payment obligation, access or an economic right to income, for example. This definition precedes the choice of technical standard. Physical or financial assets also require an identified obligated entity and a way to enforce the right.
A smart contract records balances and may enforce restrictions, automate distributions or facilitate transfers. Key custody, custody of the asset and updating external registers are separate functions. A token standard does not replace those operations or decide the product’s legal classification.
Fractionalization and automation are possible capabilities, not guaranteed outcomes. Trading requires buyers, infrastructure and appropriate permissions. Atomic settlement requires both sides of the exchange to execute together; merely issuing a token does not provide it.
Also known as
- Asset tokenization
