Understanding: what is tokenisation?

To understand tokenisation, we first need to define what a... token is. 

A token is a digital representation of a property right. In a financial context, this means that shares, bonds, traditional currencies or even commodities can be "tokenised" or converted into digital tokens on the blockchain.

Any financial asset can be registered on a blockchain. This acts as a decentralised register to record and verify transactions, guaranteeing their authenticity and immutability.

The blockchain makes it possible to cut out intermediaries and automate many operations thanks to its smart contracts. The smart contracts are programs that automatically execute contractual clauses when a set of predefined conditions is met.

An example: the token can only be transferred to a person who has had their identity verified.