The Spectrum of Tokenization - Fall 2023

Executive Summary

The Spectrum of Tokenization offers a novel and comprehensive framework for
understanding tokenized asset finance.

Until this point, assets have been characterized in a binary fashion, as either tokenized
or not tokenized. However, as tokenized asset markets evolve, this binary
characterization is both limiting and outdated.

In tokenized asset markets today, there exists a spectrum of ways that assets and
financial relationships can be digitized; no longer are assets confined to either
offchain or onchain realms, but rather, can interface with both worlds in varying ways
and capacities.

As such, we need an updated way to characterize and discuss tokenized asset
finance. We created the Spectrum of Tokenization with this purpose in mind, and with
the hope that it will foster long-standing common dialogue and understanding
amongst stakeholders.

Throughout this piece, we introduce and break down the Spectrum of Tokenization
framework, providing examples of different models of tokenization and highlighting
key differences between each model. Additionally, we highlight the opportunities and
risks that asset owners, investors, and service providers may face as they interact with
different tokenization models across the Spectrum.

:point_right: Read the full report hereRWA.xyz Blog - The Spectrum of Tokenization Report