2025-08-30
In the traditional financial system, securities publishing and trading face problems such as cumbersome processes, limited liquidity, and geographical barriers. The development of blockchain technology has given birth to the innovative form of Securitization Token (Tokenized Security). It converts traditional securities (such as stocks, bonds, asset income rights, etc.) into digital tokens on the blockchain, and realizes the efficient circulation and value distribution of assets under the compliance framework. How can this new financial instrument balance innovation and regulation? How will it reshape the global Capital Markets landscape?
Securitization tokens refer to digital assets that tokenize the rights and interests of traditional financial securities (such as ownership, income rights, voting rights, etc.) through blockchain technology in accordance with laws and regulations. Its core features are compliance and asset mapping. Unlike cryptocurrencies such as Bitcoin, Securitization tokens need to meet regulatory requirements (such as the US SEC's Howey test) to ensure that they represent the rights and interests of real assets rather than pure speculative instruments.
According to the underlying asset type, Securitization tokens are mainly divided into three categories:
Its essence is to digitize the publishing, trading, and settlement processes of securities through the distributed ledger technology of blockchain, while retaining the financial attributes and legal compliance of traditional securities, and realizing "the right of assets is confirmed on the chain, and the transaction circulation can be traced back".
The Technology Implementation of Securitization Token takes "compliance" as the core, and builds a multi-layer architecture including the underlying blockchain, smart contracts, and regulatory modules:
Select a permissioned chain (e.g. Hyperledger) or a compliance public chain (e.g. Polkadot's compliance branch) as the bottom layer to ensure that node access is controllable. Adopt standardized token protocols (e.g. ST-20, ERC-1400) to define the compliance properties of Securitization tokens, clarify transfer restrictions (e.g. lock period, Accredited Investors certification), equity distribution rules (e.g. dividend distribution ratio), etc. For example, the ST-20 standard mandates that tokens contain publisher information, compliance statements, and investor qualification verification interfaces, and implement regulatory requirements at a technical level.
The life cycle rules of securities are preset through smart contracts: the KYC/AML (Know Your Customer/Anti Money Laundering) process is automatically executed in the publishing stage, and only Accredited Investors are allowed to participate; the income is automatically distributed according to the preset rules during the existence period (such as transferring money from the publisher's account to the token holder's address during quarterly dividends); the investor qualification and transfer restrictions are verified during transactions to avoid illegal circulation. A real estate securitization project realizes the automatic splitting of rental income and the distribution of token holders through smart contracts, reducing the cost of manual intervention.
Integrate real-time compliance monitoring system, connect with regulatory data interface, real-time synchronization of token transaction data (such as position volume, turnover rate), to ensure compliance with the "Securities Law", "Financial Instruments Market Directive" and other regulations. HashKey Exchange In the Securitization token service, through blockchain regulatory sandbox technology, the information sharing and compliance coordination of publishers, investors and regulators are realized to ensure that transactions are carried out in a transparent and controllable environment.
Securitization tokens demonstrate disruptive potential in multiple financial sectors by operating on-chain in compliance:
SMEs can directly connect with global Accredited Investors by publishing equity stake Securitization tokens, bypassing intermediaries such as investment bank underwriting, and reducing financing costs. For example, a technology startup publishes tokenized equity stakes on the compliance blockchain platform. Investors become shareowners by holding tokens, and smart contracts automatically record equity stake changes and execute voting rights, achieving a balance between "decentralized financing" and "compliance".
Split high-value assets (e.g. real estate, private equity stakes) into standardized tokens, allowing investors to participate at a lower threshold. For example, commercial real estate worth $10 million can be split into 100,000 tokens ($100 each). Investors who purchase tokens have the corresponding proportion of rental income rights and asset disposal rights, and can trade in real time on the compliance trading platform to solve the problem of insufficient liquidity of traditional assets. HashKey Exchange supports secondary market transactions of compliance Securitization tokens, and realizes 7 × 24-hour settlement across regions and time zones through smart contracts to improve asset circulation efficiency.
In the field of ABS (Asset-Backed Security), Securitization tokens upload underlying data such as accounts receivable and consumer financial assets to the chain, and automatically trigger default dispositions through smart contracts (such as the distribution of token income after mortgage asset auctions) to enhance the transparency of asset pools. After a consumer finance company tokenizes credit assets, investors can view the repayment records of each loan in real time through the blockchain, reducing the risk of information asymmetry.
Despite the promising future of Securitization tokens, its development still needs to overcome challenges such as inconsistent regulatory frameworks (such as differences in the definition of "securities" among countries), incomplete technical standards (such as cross-chain compliance interactions), and insufficient market awareness. With the progress of global regulatory technology and the maturity of blockchain infrastructure, Securitization tokens are expected to become the core bridge connecting traditional finance and digital finance, and promote the evolution of Capital Markets in a more efficient and inclusive direction.