Tokenisation: understand the asset behind the structure

Tokenisation changes the structure through which an interest may be held or transferred. It does not remove the need to understand the underlying property and the holder's rights.

Read the structure

Establish what the token represents, the entity involved, fees, decision rights and restrictions. Verify the provider's current regulatory standing with the relevant authority.

Investigate the exit

Check transfer eligibility, permitted mechanisms and any conditions that could limit a sale. Do not assume a digital format guarantees liquidity. The property, legal structure and platform arrangements each require their own assessment.