Tokenization of Property Rights

This paper explores the legal and regulatory implications of tokenizing property rights within the Swiss legal framework, focusing on the burgeoning trend of tokenizing assets through blockchain technology. It delves into the concept of tokenization, where tangible assets’ ownership rights are digitized into tokens, facilitating easy trading and enhancing market liquidity. The study analyzes legal frameworks governing the transfer of ownership, emphasizing the role of tokens as enforcement instruments in contractual relationships. The authors examine potential scenarios related to the transfer of possession, co-ownership, and the classification of asset tokens. Additionally, the paper discusses the taxonomy of asset tokens, addressing their possible categorization as financial instruments by Swiss regulatory authorities. Furthermore, the paper addresses the possible categorization of tokenized property as collective investment scheme under Swiss law. The findings highlight the complexity of legal considerations in tokenizing real-world assets, providing valuable insights for entrepreneurs navigating the evolving landscape of blockchain-based asset ownership.