Creating tokenized assets using Assets is easy and does not require advanced (technical) knowledge. Tokenized assets can be created using our ready templates for each asset class, or you can create your own custom template to set custom attributes and fields for your specific asset.
One decision you will need to make before you start is what token standard you will use for your tokenized asset. Assets supports two token standards:
ERC-20: Most common token standard, perfect for standard asset tokenizations that do not require an additional compliance layer.
ERC-3643: Token standard with a compliance layer. Perfect for asset tokenizations that require additional control and compliance, not recommended for simpler tokens due to higher complexity.
Below we will explain both standards more in-depth, as well as the process for tokenizing your asset using either of these standards.
Creating ERC-20 tokens
Introduction to Issuing ERC-20 Tokens
Tokenizing an asset using the ERC-20 standard involves several key steps to ensure proper setup and deployment. This section will guide you through the process of creating and managing ERC-20 tokens using our platform, ensuring a smooth and secure tokenization process
Why Use ERC-20 for Asset Tokenization?
The ERC-20 standard is the most widely used token standard in blockchain, offering a simple, efficient, and widely supported framework for issuing and managing digital assets. It ensures seamless integration with wallets, exchanges, and decentralized applications (dApps), making it an ideal choice for asset tokenization. Their benefits include:
Interoperability & Ecosystem Support: ERC-20 tokens are fully compatible with existing wallets, decentralized exchanges (DEXs), and DeFi platforms, ensuring smooth integration across the blockchain ecosystem.
Simplicity & Efficiency: With a well-defined set of functions, ERC-20 tokens are easy to issue and manage. The standardization reduces development complexity and ensures consistent token behavior across platforms.
Cost-Effectiveness & Scalability: ERC-20 transactions benefit from low gas fees and high transaction speeds, making them a cost-efficient and scalable solution for asset tokenization.
Issuing ERC-20
In order to tokenize an asset using the ERC-20 standard, start by going to the dashboard and connect your wallet on the top right. Furthermore, make sure you are connected to the Polygon blockchain on the top right as well. Once this is done, click ‘Create Asset’ on the dashboard.
Here, select the type of asset you wish to tokenize and proceed with filling out the relevant information until you reach the ‘Tokenization’ part of the process. In this window, select ‘Polygon’ in the chain tab and select ‘ERC-20’ as the token type. Then proceed to fill out the rest of the information and continue the process. As a next step, you will need to deploy the contract and confirm the transaction.
Once this is done, you can select the token from your dashboard or wallet on Assets, and use this page to transfer the tokens, edit the token information, or to use the tokens as collateral in a lending pool using Pools.
Creating ERC-3643 tokens
Introduction to Issuing ERC-3643
Tokenizing an asset using the ERC-3643 standard follows a specific process tailored for compliant and regulated token operations. This section outlines the essential steps for deploying and managing ERC-3643 tokens, ensuring adherence to regulatory standards.
Why Use ERC-3643 for Asset Tokenization?
Regulatory compliance: ERC-3643 tokens are specifically designed to meet regulatory requirements. This includes features for KYC/AML (Know Your Customer/Anti-Money Laundering) compliance, ensuring that only authorized and verified participants can hold and trade these tokens.
Whitelisting and identity management: The ERC-3643 standard supports whitelisting, allowing issuers to control who can own and transfer tokens. This is crucial for maintaining compliance and ensuring that only eligible participants engage with the tokens.
Advanced features: ERC-3643 provides additional functionality such as the ability to mint and burn tokens based on regulatory requirements, enhancing the flexibility and control over the token lifecycle.
Enhanced security: The standard includes mechanisms to enforce compliance and prevent unauthorized access, ensuring a secure environment for asset tokenization.
ERC-3643 tokens offer a sophisticated solution for asset tokenization, providing the necessary tools to meet regulatory standards and manage complex compliance requirements effectively. This makes ERC-3643 an ideal choice for tokenizing financial instruments and other assets that require stringent oversight and control.
How it works: Issuing an ERC-3643
In order to tokenize an asset using the ERC-3643 standard, start by going to the dashboard and connect your wallet on the top right. Furthermore, make sure you are connected to the Polygon blockchain on the top right as well. Once this is done, click ‘ Create Asset’ on the dashboard.
Here, select the type of asset you wish to tokenize and proceed with filling out the relevant information until you reach the ‘Tokenization’ part of the process. In this window, select ‘Polygon’ in the chain tab and select ‘ERC-3643’ as the token type. Then proceed to fill out the rest of the information and continue the process. As a next step, you will need to deploy the TREX suite and confirm the transaction.
Once this is done, you can select the token from your dashboard or wallet on Assets, and use this page to mint new tokens or burn tokens (after you have registered a new user identity), edit the token information, or to use the tokens as collateral in a lending pool using Pools.
Whitelisting an ERC-3643 token holder
Before you can mint or burn tokens, you will need to register/whitelist a new user identity. Registering this user identity allows the user to hold and use the tokens. In order to register a new user identity, go to the page of your token on Assets via your dashboard or wallet. On there, click ‘Mint tokens’ or ‘Burn asset’. This will open a new page. On this page, select ‘Register new user identity’ from the right, and enter the wallet address of the user. Once the transaction is verified, you will be able to click on the user on the page and will be able to either mint tokens to them, or to burn tokens from them.