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Omar Baruzzo
Omar Baruzzo

Posted on Originally published at omarbaruzzo.it

A token is a claim, not the asset

Tokenizing an asset is the easy part. The token is a claim, and a claim is only worth the obligation behind it. Here is the checklist I actually care about when I review one.

Binding: who guarantees 1 token = 1 unit of the asset, over time? A custodian, an SPV, a legal wrapper — not the contract.

Redemption: burn the token, release the asset. Who is obligated to deliver, and what happens on a default or a transfer freeze? This is the path most designs leave thin.

Proof-of-reserve: verifiable and signed on a schedule, not a press release.

Permissioned transfer for regulated assets: allowlists, identity, restrictions encoded in the token itself, not a free-floating bearer instrument.

The smart contract is the visible tip. The system is the integration layer around it: watch on-chain events, reconcile each token against the off-chain record, track redemptions, write it where auditors can read it. Ordinary integration engineering, and where the months go.

Full version: https://www.omarbaruzzo.it/en/blog/tokenizzare-non-e-possedere

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