Authored by
T7X
Date Released
12 December, 2024
Tokenization of real-world assets (RWAs) and traditional asset securitization both aim to make assets more accessible and liquid, but they differ significantly in terms of technology, cost, transparency, and investor access. While securitization has long been a cornerstone of the financial world, blockchain-based tokenization offers a modern approach that can transform asset management, ownership, and investment. Below are the key differences that set these two methods apart.
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Securitization abstracts risk with paper; tokenization exposes state in code. Transparency is the advantage—if you design for it.
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Tokenization vs. securitization: what truly differs
Both approaches pool assets and distribute exposure, but tokenization uses on‑chain primitives to reduce friction and expand access. Securitization relies on intermediaries and paper‑based processes; tokenization embeds rules in code and exposes real‑time state.
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- Settlement: T+days vs near‑instant on‑chain
- Transparency: periodic reports vs live on‑chain state
- Access: accredited desks vs global, verified wallets
- Costs: multiple intermediaries vs automated workflows
- Programmability: static docs vs smart‑contract logic
- Liquidity: dealer markets vs interoperable venues
- Compliance: after‑trade checks vs enforced transfer rules
Conclusions
Tokenization modernizes the core mechanics of distributing asset exposure. When paired with rigorous legal structuring and compliance, it offers lower friction, richer transparency, and broader access than traditional securitization workflows.
