Representing physical things.
WHAT IT MEANS
Issuing a token representing ownership or a claim on something outside the ledger.
WHAT EXAMPLES INCLUDE
Property Commodities Debt instruments Fund shares Invoices
WHAT IT CLAIMS TO PROVIDE
Fractional ownership Easier transfer Wider access Faster settlement
WHAT THE FUNDAMENTAL DIFFICULTY IS
The token and the asset are separate things.
WHAT THAT MEANS
Holding the token conveys rights only if a legal structure makes it so.
WHAT THAT REQUIRES
A vehicle holding the asset Enforceable terms linking token to claim A custodian A jurisdiction recognising the arrangement
WHAT THAT INTRODUCES
Exactly the intermediaries the technology was meant to remove.
WHY THAT IS NOT NECESSARILY WRONG
The benefit may be settlement and transferability, not the absence of intermediaries.
WHAT TO ESTABLISH
What the token holder can actually enforce, and against whom.
WHAT TO EXAMINE
Who holds the asset Who verifies it exists What happens on default or dispute Whether transfer is legally effective
WHAT REGULATION USUALLY APPLIES
Securities law, since these are typically investments. Take advice.
