A wide range of financial and real assets can be tokenized, provided they are structured appropriately and comply with applicable regulations. This can include:
- Tangible Assets, such as real estate, artworks, and physical commodities (like gold and diamonds)
- Intangible Assets, such as carbon credits, renewable energy, and intellectual property
- Financial Assets, such as stocks, bonds, and derivatives
- Fiat Currencies, mainly represented by fiat-backed stablecoins and central bank digital currencies (CBDCs)
On InvestaX's MAS-regulated platform alone, we have seen the following asset classes tokenized:
- Private Credit and Debt
- Money Market Funds
- Commodities (Gold)
- Commodity Fund
- Treasury Bills
- Private Equity and other types of funds
For a detailed breakdown of asset types and what makes each suitable for tokenization, see: What Assets Can Be Tokenized?
The rationale and the scope of issuing tokenized assets remains the same as those of traditional security offerings. However, tokenization provides an added component of "digitizing" or digitally representing the ownership interests of private companies or investment funds. Only a licensed tokenization platform, such as InvestaX, can issue and distribute compliant tokenized assets on behalf of private companies and investment funds.
The key stages of the process typically include:
- Asset evaluation: confirming the asset's suitability for tokenization, ownership documentation, and applicable regulatory classification
- Legal structuring: selecting the appropriate issuing vehicle (e.g. SPV, fund, trust) and preparing the offering documentation
- Token structuring: defining token type, token standard, and the rights embedded in the token (e.g. interest payments, voting rights, redemption terms)
- Investor qualification: determining eligible investor categories and configuring KYC/AML and transfer compliance rules
- Primary issuance: launching the offering to qualified investors on a licensed platform
- Secondary trading and lifecycle management: managing ongoing reporting, distributions, and investor communications post-issuance
For a step-by-step breakdown of each stage, see: Real-World Asset Tokenization Process Explained
The timeline can vary depending on the complexity of the deal and the readiness of the parties involved. On average, once deal terms are finalized and documentation is in place, the offering can be launched within 2 to 4 weeks. This includes onboarding, compliance checks, smart contract deployment, and listing preparation.
Tokenized assets are generally subject to regulatory requirements when the tokens represent ownership interests, economic rights, or claims linked to an underlying financial asset. The classification depends on the token's structure, the rights it conveys, and how the relevant jurisdiction defines a "security." Some tokenized representations of commodities or physical assets may fall outside securities rules, but most tokenized investment products operate within capital markets frameworks.
Where a tokenized asset is classified as a security, the activities involved in bringing it to market each carry their own licensing requirements. Self-issuance can in many jurisdictions be carried out without a license, but third-party distribution, platform operation, and custody typically require licensed intermediaries. Regulators broadly apply the position of "same activity, same risk, same regulatory outcome."
Assessing classification early helps determine which regulatory and licensing requirements apply to your specific asset and structure.
For further reading:
InvestaX holds a Capital Markets Services license from The Monetary Authority of Singapore (MAS) that allows it to deal with securities and collective investment schemes and provide OTC (over-the-counter) trading of securities via its platform. Plus, we have been granted a Recognized Market Operator (RMO) license, which allows InvestaX to operate an organized market for tokenized securities.
InvestaX also holds an exempt financial advisory license that allows it to advise and provide consultancy services on the above-mentioned financial products.
InvestaX offers two main service tracks for issuers, which can be used independently or together:
- Tokenization Advisory and Consulting: End-to-end advisory support for issuers going through the tokenization process, or those requiring strategic and legal structuring guidance.
- Licensed Tokenization Platform: Technology and infrastructure for token issuance, primary offering, secondary trading, custody, and lifecycle management on a MAS-licensed platform.
- Listing Services on the RMO Exchange: List and trade tokenized securities on an MAS-licensed exchange.
Learn more:
InvestaX provides regulated infrastructure, including a MAS-licensed marketplace, to support issuers in conducting fundraising activities.
As with traditional fundraising, outcomes will depend on factors such as market conditions, deal structure, and investor demand. InvestaX provides the regulated infrastructure and distribution channels; it does not guarantee the outcome of any offering.
When it comes to jurisdiction, it is important to distinguish between token issuance and token offering.
As a technology provider, InvestaX can assist companies in issuing tokens for assets in any jurisdiction, as token issuance is a technical process of creating and configuring tokens using the platform's infrastructure.
The jurisdiction governing the offering, however, is determined by the issuer. This takes into consideration the governing laws of the issuing entity, the target investor base, and the overall objectives of the offering.
InvestaX holds a Capital Markets Services License under the Singapore Securities and Futures Act 2001. This allows InvestaX to support issuers in conducting offerings in compliance with Singapore's securities regulations, covering both onshore and offshore investment vehicles. Issuers can use the InvestaX platform to reach investors through a Singapore-based regulated framework.
Issuers distributing to investors in other jurisdictions remain responsible for compliance with the laws of those jurisdictions. InvestaX does not currently accept investors from the United States or sanctioned countries, and issuers should factor these restrictions into their target market planning.
To begin, contact us here with a brief description of your asset and what you are looking to achieve. From there, our team will outline the next steps, including the scope of services, estimated timeline, and any initial documentation required.