Tokenize Receivables On-Chain: Process

So, you're thinking about how to tokenize receivables on-chain? It sounds complicated, but it's really about making future payments more accessible and easier to trade. Think of it like turning a promise of money into a digital asset. This process uses blockchain technology to make things more transparent and efficient. We'll break down what it means to tokenize receivables on-chain, from the basics to how it actually works and why it's becoming a big deal in finance.

Key Takeaways

• Tokenizing receivables on-chain means turning future payments, like invoices, into digital tokens on a blockchain.
• This process uses blockchain technology to create a transparent and secure record of ownership and transactions.
• It can help businesses get cash faster by selling these tokens instead of waiting for payments.
• Tokenization allows for fractional ownership, meaning more people can invest smaller amounts in these future payment streams.
• Smart contracts automate many parts of the process, like distributing payments to investors, which cuts down on manual work and potential mistakes.

Understanding The Tokenization Process

Defining Receivables Tokenization And Its Importance

So, what exactly is tokenization when we talk about receivables? Think of it like this: instead of just having a paper or digital record of money owed to you (like an invoice), you're turning that right to receive payment into a digital token. This token lives on a blockchain, which is basically a super secure, shared digital ledger. It's like giving your future payment a digital ID that can be easily tracked, managed, and even traded.

Why bother with this? Well, traditional receivables can be a bit of a pain. They can be hard to sell, take a long time to get paid, and it's not always clear who owns what. Tokenizing them changes that. It makes them more liquid, meaning you can sell them more easily, and it brings a level of transparency and security that was just not possible before. It’s a way to unlock the value tied up in those outstanding payments.

The Mechanics Of Receivables Tokenization

Alright, let's get into how this actually works. It's not magic, but it does involve some pretty neat technology.

1. Identify and Structure the Receivable: First, you need to pick the specific receivables you want to tokenize. This could be a batch of invoices, a loan repayment schedule, or any other form of money owed. You'll need to make sure all the legal and financial details are sorted out.
2. Create Digital Tokens: Using smart contracts on a blockchain, you create digital tokens. Each token represents a specific portion or the entirety of the receivable. Think of it like dividing a big asset into smaller, manageable digital pieces.
3. Link Tokens to the Asset: These tokens are then linked to the actual receivable. This connection is crucial because it means the token holder has a claim to the underlying payment.
4. Distribute and Trade: Once the tokens are created, they can be distributed to investors. These investors can then hold onto them, expecting the payment when it's due, or they can trade them on secondary markets.

The whole point is to take something that might be stuck in a traditional, slow system and make it a digital asset that can move and be managed much more easily. It's about making illiquid assets more liquid.

Key Benefits Of Receivables Tokenization

So, why would a business go through the trouble of tokenizing its receivables? There are some pretty compelling reasons:

• Increased Liquidity: This is a big one. Instead of waiting for invoices to be paid over months, you can tokenize them and sell those tokens to investors. This gives you cash now, which can be a lifesaver for managing cash flow.
• Reduced Costs: Traditional methods of managing and selling receivables often involve a lot of paperwork, intermediaries, and fees. Tokenization, with its automated processes via smart contracts, can cut down on these costs significantly.
• Greater Transparency: Because tokens live on a blockchain, every transaction and ownership change is recorded immutably. This means everyone involved can see exactly what's happening, reducing the chances of fraud or disputes.
• Access to New Capital Pools: Tokenization opens up investment opportunities to a wider range of investors, including those who might not have been able to participate in traditional receivable financing. This can lead to more competitive pricing and better terms.
• Fractional Ownership: You can divide up large receivables into smaller tokenized units. This allows smaller investors to participate and gives the original owner more flexibility in how they sell off portions of their receivables.

Foundational Technologies For Tokenization

The Role Of Distributed Ledger Technology

Think of Distributed Ledger Technology (DLT) as the digital backbone for tokenization. It's essentially a shared database spread across many computers, making it super hard to mess with. When we talk about tokenizing receivables, DLT means every transaction, every ownership change, is recorded in a way that everyone involved can see and agree on. This shared record-keeping is what makes tokenization trustworthy.

• Decentralization: No single point of control means no single point of failure. This makes the system more robust.
• Immutability: Once a transaction is recorded, it's pretty much set in stone. You can't go back and alter past records, which builds a lot of confidence.
• Transparency: While privacy can be maintained for sensitive details, the ledger itself allows authorized parties to view transaction histories, making audits much simpler.

DLT, often in the form of blockchain, is what allows us to create these digital tokens representing your receivables and track them securely.

Smart Contracts For Automation And Control

Smart contracts are like self-executing agreements written in code. They live on the DLT and automatically carry out actions when certain conditions are met. For tokenized receivables, this is a game-changer. Imagine a smart contract that automatically releases payments to investors once a specific receivable is confirmed as paid by the original debtor. It takes the manual work and potential for error right out of the equation.

• Automated Execution: Payments, interest distributions, or even collateral adjustments can happen automatically based on predefined rules.
• Enforced Agreements: The terms of the tokenized receivable are coded directly into the contract, ensuring they are followed.
• Reduced Counterparty Risk: Since the contract executes itself, you don't have to worry as much about the other party not holding up their end of the deal.

These contracts are key to making the whole process efficient and reliable.

Ensuring Security And Transparency On-Chain

Putting financial assets on a DLT brings a whole new level of security and transparency. Because transactions are recorded on an immutable ledger, it's incredibly difficult for anyone to tamper with ownership records or transaction histories. This means you get a clear, verifiable audit trail for every tokenized receivable.

The combination of DLT and smart contracts creates a system where trust is built into the technology itself, rather than relying solely on intermediaries. This shift is what makes tokenization so powerful for financial instruments.

This on-chain security helps prevent fraud and makes it easier to track assets, giving both issuers and investors peace of mind.

Structuring Receivables For Tokenization

Before you can even think about turning receivables into shiny new digital tokens, you've got to get the underlying assets in order. This isn't just about having a pile of invoices; it's about making sure those invoices, or any other future payments owed to you, are properly set up and legally sound. Think of it like preparing ingredients before you start cooking – you need good quality stuff to make a good meal.

Origination and Structuring of Receivables

This is where it all kicks off. You need to identify the actual receivables – the money that's coming your way from customers for goods or services you've already provided. These could be anything from standard invoices to loan repayments or subscription fees. The first big step is to package these receivables. This often involves a financial advisor or a specialized platform that takes a good look at the quality and quantity of these future payments. They'll do their homework, making sure everything is legitimate and that the cash flow is predictable enough to be interesting to investors. The goal here is to create a clear, verifiable pool of future income.

Here’s a quick rundown of what goes into this stage:

• Asset Identification: Pinpointing exactly which receivables will be tokenized.
• Due Diligence: Checking the validity and collectability of each receivable.
• Legal Review: Making sure all contracts and agreements are solid and compliant.
• Structuring the Pool: Deciding how the receivables will be grouped together for tokenization.

This initial structuring phase is critical. It lays the groundwork for the entire tokenization process, influencing everything from the type of tokens created to the potential returns for investors. Getting this right means fewer headaches down the line.

Setting Up Special Purpose Vehicles

Sometimes, to keep things clean and separate, especially for larger or more complex deals, a Special Purpose Vehicle (SPV) is created. This is essentially a separate legal entity that holds the receivables. It's like putting those assets in their own little box, away from the main company's other business. This separation helps protect investors because it means their investment is tied only to the performance of those specific receivables, not to the broader financial health of the originating company. It also makes the whole structure clearer for everyone involved. Setting up an SPV involves legal and financial experts to make sure it’s done correctly and meets all the necessary requirements for asset tokenization.

Legal Frameworks For Tokenized Assets

Finally, you can't just slap a token on a receivable without a solid legal foundation. This means defining what rights the token holder actually has. Does the token represent a direct claim on the cash flow? What happens if a customer doesn't pay? All these questions need clear answers laid out in legal documents. This framework ensures that the digital token has real-world legal standing and that investors know exactly what they're buying into. It’s about bridging the gap between the digital token and the physical asset it represents, making sure it’s all above board and legally recognized.

Issuing And Distributing Tokenized Receivables

Token Issuance and Smart Contract Integration

Once the receivables are all structured and legally buttoned up, it's time to actually create the digital tokens. This is where the blockchain really comes into play. Tokens are "minted," which basically means they're created on a specific blockchain network. These aren't just random digital coins, though; each token represents a specific claim on those underlying receivables. Think of it like issuing digital shares for a pool of invoices you're expecting to get paid.

Smart contracts are the real brains behind this whole operation. They're pieces of code that live on the blockchain and pretty much run themselves. All the details of the deal are programmed into them: the payment schedule for the receivables, any interest rates, how payments will be split up among token holders (this is often called the 'waterfall'), and any conditions that need to be met. For instance, a smart contract can be set up to automatically send out payments to investors once the original invoice gets paid. This automation is a huge part of cutting down on manual work and avoiding mistakes.

Listing and Distribution to Investors

With the tokens minted and the smart contracts ready to go, the next big step is getting these tokens into the hands of investors. This usually happens through a digital securities platform or a specialized exchange. Depending on the rules in a particular country, these tokens might only be offered to accredited investors, or in some cases, they could be available to the general public. You'll almost always need to go through strict Know Your Customer (KYC) and Anti-Money Laundering (AML) checks to make sure everyone involved is on the up and up.

Navigating the Regulatory Landscape

This is a big one, and honestly, it's still a bit of a wild west out there in some ways. The rules around tokenized assets are still being figured out in many places. It's super important to understand the securities laws in the jurisdictions where you plan to issue and distribute these tokens. Are these tokens considered securities? If so, what regulations apply? This often involves working closely with legal experts who specialize in this area. Plus, you've got to make sure you're meeting all the AML and KYC requirements. This isn't just about following the law; it's about building trust with investors and making sure the whole system is legitimate. Different countries are taking different approaches, so knowing which jurisdictions are more friendly to tokenized debt is key for planning your distribution strategy.

Investor Advantages In Tokenized Receivables

When you're looking at investing in tokenized receivables, there are some pretty clear upsides that make it stand out from the old ways of doing things. It's not just about getting in on the latest tech; it's about tangible benefits that can really make a difference to your portfolio. Let's break down what makes this so appealing for investors.

Improved Transparency and Audit Trails

One of the biggest headaches with traditional investments, especially in private markets, is the lack of clear information. You often have to rely on periodic reports that might not tell the whole story, and tracking where your money is actually going can feel like a guessing game. Tokenized receivables change that. Because everything is recorded on a blockchain, you get a clear, unchangeable history of every transaction. This means you can see exactly how cash flows are moving, when payments are due, and when they've been made. It's like having a real-time dashboard for your investment.

• Real-time visibility: Track token supply and cash flows as they happen.
• Immutable records: Blockchain ensures that transaction history can't be altered, building trust.
• Reduced information asymmetry: Everyone involved has access to the same verified data.

This level of transparency is a game-changer. It cuts down on the guesswork and allows investors to make more informed decisions based on actual data, not just projections or delayed reports. It really builds confidence in the investment.

Enhanced Security and Reduced Counterparty Risk

Security is always a top concern, and tokenization brings some serious improvements here. When you hold a token representing a receivable, you have a digital claim that's secured by the underlying blockchain technology. This means it's much harder for fraud to occur compared to traditional paper-based systems. Plus, by automating many processes through smart contracts, you reduce the number of intermediaries involved. Fewer middlemen often means less risk of a single point of failure or a bad actor causing problems. It's a more robust way to hold and manage your investments.

By leveraging blockchain, tokenized receivables offer a more secure and transparent investment vehicle. The immutable nature of the ledger means that transaction histories are tamper-proof, and smart contracts automate processes, thereby minimizing the reliance on intermediaries and reducing associated risks.

Accessing New Capital Pools

Traditional financing can be limiting. You're often tied to specific banks or a limited group of investors. Tokenization blows that wide open. By creating digital tokens that represent claims on future receivables, you can tap into a global pool of investors. This isn't just about getting more money; it's about accessing capital from investors who might not have been able to participate in traditional private debt markets before. Platforms can be built to cater to different types of investors, from institutions to individuals, depending on the regulatory framework. This broadens the potential investor base significantly, which can lead to more competitive financing terms. It's about making your receivables visible to a much wider audience than ever before. You can find more information on how tokenization is revolutionizing debt securitization.

Operational Efficiencies Of Tokenization

When we talk about tokenizing receivables, it's not just about fancy new tech; it's really about making things run smoother and cheaper. Think about all the manual steps involved in traditional finance – the paperwork, the back-and-forth, the waiting. Tokenization aims to cut through all that.

Streamlined Processes and Automated Transactions

This is where smart contracts really shine. They can automate a lot of the stuff that used to take ages. For instance, when a payment related to a tokenized receivable comes in, a smart contract can automatically trigger the next step, like distributing funds to the right parties or updating records. This means fewer people have to manually move things along, which speeds everything up. It's like having a super-efficient assistant who never sleeps.

• Faster processing times: Transactions can settle much quicker.
• Reduced paperwork: Digital tokens and smart contracts cut down on physical documents.
• Automated workflows: Pre-programmed actions happen automatically when conditions are met.

Reducing Manual Paperwork and Delays

Honestly, who enjoys drowning in paperwork? Tokenization significantly cuts down on the need for physical documents and manual data entry. Instead of chasing down signatures or manually reconciling ledgers, everything is recorded digitally on the blockchain. This not only makes the process faster but also reduces the chances of errors creeping in. Imagine not having to spend hours cross-referencing different spreadsheets – that's the kind of efficiency we're talking about. This can really help streamline processes.

The shift from manual, paper-based systems to digital, automated workflows is a game-changer for operational efficiency. It's about taking out the bottlenecks that slow down traditional finance.

Lower Operational Costs

All these efficiencies add up to lower costs. When you reduce manual labor, minimize errors, and speed up transactions, you're naturally cutting down on expenses. Fewer intermediaries often mean fewer fees, too. Think about it: if a process that used to take days and involve multiple people can be done in minutes with automated code, the cost savings are substantial. This makes managing and trading tokenized receivables a much more cost-effective proposition for everyone involved.

The Transformative Impact On Financial Markets

Tokenizing receivables is more than just a tech upgrade; it's fundamentally changing how financial markets operate. We're talking about making things more open, more efficient, and frankly, more accessible to a lot more people. It's like taking a complex, old system and giving it a much-needed digital makeover.

Designing Innovative Financial Products

This whole tokenization thing is a game-changer for creating new financial products. Imagine being able to package up a stream of future payments from various invoices into a single, tradable digital asset. This allows for a level of customization and flexibility that was just not possible before. We're seeing new kinds of investment vehicles emerge that can cater to very specific investor needs or business financing requirements. It's not just about making existing products digital; it's about inventing entirely new ones.

• Fractional Ownership: High-value assets or income streams can be divided into smaller, more affordable tokens.
• Programmable Features: Smart contracts can automate things like dividend payouts or interest payments directly to token holders.
• Customizable Risk Profiles: New products can be designed to offer specific risk and return characteristics.

Democratizing Access To Investment Opportunities

One of the biggest impacts is how tokenization is opening up markets that were previously out of reach for many. Think about investing in a portfolio of commercial loans or a share in a large infrastructure project. Traditionally, these opportunities were reserved for big institutions with deep pockets. Now, by breaking these assets down into tokens, even smaller investors can get a piece of the action. This democratization is a huge deal for financial inclusion. It means more people can potentially grow their wealth through investments that were once exclusive. This is a big step towards making finance more equitable for everyone.

Tokenization is fundamentally shifting the power dynamic in finance, moving away from exclusive, opaque systems towards more open, transparent, and inclusive markets where a wider range of participants can engage and benefit.

Facilitating Global Market Access

Tokenization also has the potential to smooth out cross-border transactions and connect markets globally. Because blockchain technology operates on a global, 24/7 basis, tokenized assets can theoretically be traded anywhere, anytime, by anyone with an internet connection (subject to regulations, of course). This can significantly reduce friction in international trade and investment. It means businesses can access capital from a wider pool of global investors, and investors can diversify their portfolios across different geographies more easily. The ability to connect disparate markets and make them more liquid is a massive step forward for global finance. This technology is making diverse investments more accessible and efficient for a wider range of investors.

Navigating The Regulatory Environment

Okay, so let's talk about the rules of the road for tokenized receivables. It's not exactly a walk in the park, and honestly, it can feel like trying to assemble IKEA furniture without the instructions sometimes. Different places have different ideas about how this stuff should work, and that's where things get a little… complicated.

Understanding Securities Laws For Tokenization

First off, you really need to figure out if what you're tokenizing counts as a security. In the U.S., the SEC is pretty clear: if it looks like a security, they're going to treat it like one. This means a lot of attention on who's buying and selling, and you'll likely need to stick to accredited investors. It's not just about the tech; it's about how the asset is structured and marketed. If your token represents an investment in a common enterprise with the expectation of profits derived from the efforts of others, you're probably in security territory. This usually means registration or finding an exemption, which can add significant costs and time to the process.

AML And KYC Requirements For Compliance

No matter where you are, you're going to run into Know Your Customer (KYC) and Anti-Money Laundering (AML) rules. These aren't just suggestions; they're pretty much mandatory if you want to stay on the right side of the law. Basically, you need to know who you're dealing with and make sure they aren't trying to do anything shady. This involves:

• Investor Verification: Checking IDs, verifying addresses, and sometimes even digging a bit deeper to understand the source of funds. It's about preventing fraud and illicit activities.
• Transaction Monitoring: Platforms need systems in place to watch for suspicious patterns in how tokens are being moved around. This helps flag potential money laundering attempts.
• Record Keeping: You've got to keep good records of all this. Regulators like to see that you've done your due diligence and have a clear audit trail.

The need for clear regulations is paramount for institutional adoption. Big money players are hesitant because the rules aren't always crystal clear. They have fiduciary duties and a lot to lose, so they need certainty. When regulations are still evolving, it's like trying to build a skyscraper on shifting sand – you need solid ground.

Key Jurisdictions For Tokenized Debt

Where you set up shop really matters. It's not a one-size-fits-all situation. Think about it like picking a vacation spot – some places are just better suited for what you're trying to do. Here's a quick look at a few:

• United States: The SEC is watching closely. Lots of capital, but strict rules, often limited to accredited investors.
• Europe: A mixed bag. Switzerland has its DLT Act, offering certainty. The EU is working through MiCA and MiFID II, aiming for more order and investor protection.
• Singapore: The MAS has clear guidance and sandbox programs, making it a solid spot for institutional adoption.
• UAE (Abu Dhabi/Dubai): Moving fast with explicit rules from VARA and FSRA, aiming to be a hub.

Choosing the right jurisdiction is a strategic decision. It's about finding a place where the legal framework supports your specific tokenization goals and aligns with your target investor base.

Technological Underpinnings Of Tokenization

So, what actually makes tokenizing receivables possible? It’s not just some abstract idea; it’s built on some pretty solid tech. Think of it like building a really efficient digital plumbing system for your financial assets. We're talking about technologies that make things secure, transparent, and automated.

Leveraging Blockchain For Asset Representation

At its core, tokenization relies heavily on blockchain technology. You can picture a blockchain as a shared, digital ledger that's spread across many computers. Once something is recorded on this ledger, it's incredibly difficult to change or delete. This immutability is key. When we tokenize receivables, we're essentially creating digital tokens that represent a claim to a future payment. These tokens live on the blockchain, meaning their ownership and transfer history is permanently recorded and visible to authorized parties. This makes it way easier to track who owns what and when it changes hands, cutting down on a lot of the confusion and potential for fraud that comes with traditional paper-based systems. It’s a big step towards making financial assets more manageable and trustworthy.

The Role Of Oracles In Connecting Off-Chain Data

Now, receivables exist in the real world, right? They’re tied to actual contracts and payments happening outside the blockchain. This is where oracles come in. Oracles are like trusted messengers that bring real-world information onto the blockchain. For tokenized receivables, an oracle might report if a payment has been made, if a contract has been fulfilled, or if there's a dispute. This data is super important because it allows smart contracts (which we’ll get to next) to react to real-world events. Without reliable oracles, the tokens on the blockchain wouldn't accurately reflect the status of the actual receivables they represent. It’s how we bridge the gap between the digital world of the blockchain and the physical world of business transactions.

Scalability Solutions For Increased Transaction Volume

As tokenization grows, especially for something as common as receivables, the system needs to handle a lot of transactions. Early blockchains could get a bit bogged down when too many people tried to use them at once, leading to slow processing and higher fees. That’s why scalability solutions are so important. These are different approaches and technologies designed to let blockchains handle more transactions faster and cheaper. Think of it like upgrading a single-lane road to a multi-lane highway. Solutions can range from making the base blockchain itself more efficient to using secondary layers that process transactions off the main chain before settling them. This ensures that tokenized receivables can be traded and managed smoothly, even as the market expands. It’s all about making sure the technology can keep up with demand.

The Value Chain Of Tokenized Real-World Assets

Bringing a real-world asset onto the blockchain isn't a single step; it's a whole process, a chain of activities that turns something physical into a digital token you can trade. Think of it like building a house – you don't just slap it together. There are stages, and each one adds value. Understanding this chain helps us see where the opportunities and the potential snags are.

Asset Identification and Due Diligence

This is where it all starts. You've got to pick the right asset first. Is it a building? A piece of art? Maybe some invoices that are due to be paid? The key here is to really dig into the asset. We're talking about checking ownership records, making sure there are no hidden debts or claims against it, and getting a solid valuation. It’s like checking the foundation of a house before you buy it. You need to know exactly what you're dealing with. This step is super important because if the asset isn't sound, the whole tokenization project is built on shaky ground. It’s about making sure the digital token actually represents something real and valuable.

Legal Assessment and Compliance Checks

Once you've picked your asset and done your homework, you need to make sure it all fits within the law. This means looking at the rules in the places where you plan to operate. Are there specific regulations for tokenizing real estate in your state? What about international laws if you plan to sell tokens globally? You'll likely need legal experts to draft the right paperwork, maybe get appraisals, and generally ensure everything is above board. This part can be a bit of a headache, but skipping it is a recipe for disaster. It’s about making sure your tokenized asset is legally recognized and protected.

Distribution and Secondary Market Trading

So, you've got your asset, it's legally cleared, and it's been turned into a digital token. Now what? You need to get those tokens out there to investors. This could involve listing them on a specialized exchange or offering them directly. But it doesn't stop there. A big part of tokenization is making assets more liquid, and that means people need to be able to trade them after the initial sale. Setting up a secondary market where investors can buy and sell tokens from each other is key. This is where the real value of making an asset more accessible comes into play. It’s about creating a vibrant market for your tokenized asset.

The entire process, from picking an asset to letting people trade its tokens, requires careful planning and execution. Each step builds on the last, and any weakness in one stage can affect the whole chain. It's a complex but potentially rewarding way to bring real-world value onto the blockchain. Tokenizing real-world assets is becoming a major part of the financial world.

Wrapping It Up

So, we've walked through how tokenizing things like invoices and loans is changing the game, moving from the initial idea to actually getting paid. It's not just about fancy tech; it's about making finance simpler, faster, and more open to everyone. We've seen how this can help businesses get the money they need more easily and how investors can find new opportunities. While there are still some kinks to work out, like making sure the rules are clear everywhere and that the tech is solid, the direction is pretty clear. Tokenization is here to stay, and it's going to keep reshaping how we handle money and assets for the better.

Frequently Asked Questions

What does it mean to 'tokenize receivables'?

Tokenizing receivables is like taking the money a company expects to get in the future, such as from unpaid customer bills, and turning it into digital tokens. These tokens can then be bought and sold, sort of like digital IOUs, on a blockchain.

Why is tokenizing receivables important for businesses?

It's important because it helps businesses get cash right away instead of waiting for customers to pay later. This means they have more money to spend on growing their business, paying bills, or investing in new ideas.

How does blockchain technology help in tokenizing receivables?

Blockchain acts like a super secure and transparent digital record book. It keeps track of who owns the tokens and all the transactions, making it hard to cheat and easy for everyone to see what's happening.

What are 'smart contracts' and how are they used here?

Smart contracts are like automatic agreements written in computer code. For tokenized receivables, they can automatically send payments to investors when the customer pays their bill, making the whole process faster and less prone to errors.

What are the main benefits for someone investing in tokenized receivables?

Investors can get a clearer picture of their investment because all transactions are recorded on the blockchain. They also face less risk because the process is more secure and automated, and they can often buy smaller pieces of an investment (fractional ownership).

Does tokenizing receivables make things cheaper?

Yes, often it does. By using technology to automate tasks and cutting out some of the middlemen usually involved in financial deals, the costs can go down for both the business selling the receivables and the investors buying them.

Are there any rules or laws I need to know about for tokenized receivables?

Yes, there are definitely rules. Because these tokens can be seen as investments, they often fall under financial regulations. Businesses and investors need to make sure they follow laws about things like who the investors are (KYC) and preventing money laundering (AML).

Can anyone invest in tokenized receivables?

It depends on the specific offering and the rules in place. Sometimes, these investments are only available to certain types of investors, like those who meet specific income or wealth requirements. However, the goal of tokenization is often to make investments more accessible to a wider range of people.