What is tokenisation? – Definition and Explanation

🔍 What is tokenization?

Thanks to blockchain technology, tokenization enables real-world assets to be represented and valued in the digital space. By embedding an asset and its associated rights directly into a token, it streamlines their management and exchange, making transactions instant and secure.

The idea is simple: any asset, whether physical (such as real estate) or financial (such as a bond), can be divided into digital units called "tokens." These tokens act as digital representations of the underlying value. This approach makes traditionally illiquid assets more accessible and tradable, while reducing costs, delays, and administrative complexity.

Tokenization marks a pivotal shift toward a more open and efficient system of value exchange. For investors, it unlocks access to asset classes that were previously out of reach. For issuers, it provides a new and powerful way to raise capital through transparent and resilient technology.

🧵 Turning real assets into digital shares

Tokenization consists of representing an asset through one or more “tokens” recorded on a blockchain. Each token reflects a fraction of the asset's total value.

Take a concrete example with Shelters: a real estate asset worth €100,000 can be divided into 10,000 tokens of €10 each. Each token entitles the holder to a share of the rental income and any potential capital gain upon resale.

Tokens issued by Shelters are structured as bonds, whose value is backed by the ownership of the underlying real estate.

⚠️ Note: In most cases, these tokens do not grant direct ownership of the property, but rather a financial right (such as a bond) indexed to the asset's performance.

⚖️ Why use blockchain?

Blockchain technology ensures that all transactions are securely, transparently, and immutably recorded. It guarantees the authenticity of tokens, allows real-time tracking of movements, and removes intermediaries.

In short: greater clarity, fewer intermediaries, faster execution, and lower costs.

🙋‍♂️ Why own a tokenized asset?

Owning a tokenized asset offers access to a new form of investment that is more flexible, direct, and aligned with digital habits. It allows users to invest small amounts in traditionally inaccessible assets, while benefiting from a clear, traceable, and automated framework. It also makes asset exchange and transfer much easier.

By storing their fractions in their own digital wallet, investors retain full control over their holdings. Transfers and exchanges can be made freely between peers, without the token issuer being able to block or restrict them. The issuer simply tracks and recognizes the updated distribution without intervening.

Moreover, most tokenized assets follow common technical standards, ensuring interoperability with other platforms and services. This opens the door to a wide range of use cases, far beyond passive holding.

⚠️ Note: To receive returns from real estate fractions on Shelters, users must complete identity verification (KYC) on the platform.

👀 What can be tokenized?

Tokenization can be applied to a wide variety of assets, including:

- Real estate: apartments, buildings, garages…

- Artworks: paintings, photographs, sculptures

- Private company shares

- Bonds

- Agricultural assets or commodities

As you can see, a vast array of asset types can be tokenized and represented on the blockchain.

🌟 Is it legal in France?

Yes. Tokenization is recognized and encouraged by both French and European authorities. It is seen as a lever for modernizing financial markets. New platforms like Shelters are leveraging this framework to make real estate investment simple, secure, and accessible.

🧾 Conclusion

Tokenization is more than just a tech trend, it represents a deep shift in the way we invest and exchange value. By democratizing access to assets once reserved for a select few, it redefines ownership, transparency, and liquidity. One thing is certain: we’ve only just begun to explore its potential.

🔗 Ready to give it a try? Start investing in tokenized real estate from just €10 with Shelters!