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Real-world asset tokenization
Real-world asset tokenization is recording a claim on something that exists off the blockchain, such as a bond, fund share, property or commodity, as a token on a blockchain. The token can move and settle on-chain, but the asset itself stays in traditional systems.
What it means for you. The token gives you only the claim its issuer's legal terms grant, enforced off-chain through the issuer, custodian and courts, not by the blockchain. If the custodian fails or the off-chain record disagrees with the token, code cannot fix it. Check who holds the underlying asset and what the terms let you redeem.
Source: BIS Bulletin No 72: The tokenisation continuum · checked 4 October 2026
Security token
A security token — the SEC calls it a digital security, commonly a tokenized security — is a stock, bond or other security issued as a crypto asset, with the ownership record kept wholly or partly on a blockchain. In the US, it remains a security, and the securities laws apply to it.
What it means for you. In the US, the SEC says a tokenized share or bond can carry rights that differ materially from the underlying security, including economic and voting rights, and whether the issuer or an unaffiliated third party tokenized it changes what you actually hold. Offers and sales of securities must be registered with the SEC or fit an exemption.
Sources: SEC and CFTC: Application of the Federal Securities Laws to Certain Types of Crypto Assets (Release 33-11412, 2026), SEC: Crypto assets and the federal securities laws, SEC investor alert: Exercise Caution with Crypto Asset Securities · checked 4 October 2026