Tokenization and its application in different countries

  • Niloufar Ebrahimiyan Master of Science in Financial Management, Alzahra University, Tehran, Iran
  • Majid Lotfi Ghahroud Ph.D. in Financial Management, Faculty of Management, University of Tehran, Iran
  • Shayan Bastani Allah Abadi Master of Science in Business Management, University of Tehran, Iran
  • Farzad Jafari Ph.D. in Financial Management, Faculty of Management, University of Tehran, Iran
Keywords: benefits of tokenization, asset-backed token, smart contract, challenges of asset tokenization


Our life is affected by technology deeply, each upgrade in technology can affect our expectations and behaviors. They cause massive differences between decades, which makes them the most momentous and vital objects in the future of almost everything. In recent years, one of the most game changer is the combination of smart contracts, artificial intelligence, the internet of things, and blockchain. They unlock enormous possibilities in data processing and scoring, project management, estimation methods, and more importantly to investment management. There always have been some big bangs that make a new megatrend in our lives, and now, a new trend in our financial lives is developing by tokenization, and all of those new methods can make tokenization more accessible. as Castillo Ionov said: "tokenization involves taking an asset and, using blockchain technology, issuing tokens representative of that asset, facilitating its negotiation, the enjoyment of the rights of that asset and its governance". tokenization help different kinds of investment to be more liquid, fast, transparent, immutable, efficient and cheaper. It also has its challenges such as technology risk, Cybersecurity, specialists, and at the top, regulatory principles. But there's a variety of approaches to face tokenization. Different countries take advantage of it in their way. Some of them use it to boost their economic efficiency by designing a suitable regulatory framework. Some use it to better observe markets by more strict rules.

In this article, we discuss tokenization, its process, benefits and challenges, and case studies around the world compared with Iran to see the difference in usage and regulatory framework


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