What are the common challenges startups face in equity tokenisation?

The most common challenges include navigating FCA regulatory requirements, selecting the right tokenisation platform, structuring the legal framework for tokenised equity, educating investors unfamiliar with digital securities, and ensuring compliance with the UK Digital Securities Sandbox rules.

What are tokenisation platforms and how do they work?

Tokenisation platforms are regulated technology providers that convert equity or other assets into digital tokens on a blockchain or distributed ledger. In the UK, platforms operating under FCA oversight include those participating in the Digital Securities Sandbox. They handle the technical issuance, custody, and transfer of tokenised securities.

What financial insights should founders know before tokenising equity?

Founders should understand the cost structure of tokenisation (legal, platform, and compliance fees), the valuation implications of fractional ownership, how tokenised equity differs from traditional equity crowdfunding, and the tax treatment of digital securities under UK law.

What investor strategies apply to tokenised equity?

Investors in tokenised equity can benefit from fractional ownership of high-value assets, improved liquidity through secondary market trading on regulated platforms, portfolio diversification across early-stage UK startups, and participation in deals previously accessible only to institutional investors.

What is the UK regulatory landscape for equity tokenisation?

The UK regulatory landscape is governed primarily by the FCA (Financial Conduct Authority) and HM Treasury. Key frameworks include the Financial Services and Markets Act 2023, the Digital Securities Sandbox (DSS), and ongoing FCA consultations on the treatment of tokenised securities. The UK is positioning itself as a global leader in regulated digital securities.

What is equity tokenisation?

Equity tokenisation is the process of converting ownership rights in a company into digital tokens recorded on a blockchain or distributed ledger. These tokens represent shares or equity stakes and can be transferred, traded, or held digitally, subject to regulatory compliance. In the UK, tokenised equity is treated as a regulated financial instrument under FCA oversight.

Navigating the RWA Tokenisation Landscape: Key Platforms and Regulatory Insights for Founders and Investors

Shawn Jhanji
Mar 30
4 min read

The market for real world asset (RWA) tokenisation has grown rapidly, moving from an experimental phase to widespread institutional adoption. Over the past two years, the market size has nearly quadrupled, expanding from $8 billion to $33 billion. This surge reflects advances in regulation, blockchain technology, and growing demand from institutional capital markets. For founders and investors, understanding this evolving landscape is critical to avoid costly mistakes when choosing tokenisation platforms. This post provides a clear overview of the key players, platform types, and the UK regulatory context to help you make informed decisions.

Eye-level view of a digital token representation hovering over financial documents — Founder team exploring the impact of tokenisation

The Growth and Expansion of RWA Tokenisation

The rise of RWA tokenisation reflects a shift in how assets like real estate, private credit, bonds, and funds are issued and traded. The market’s growth from $8 billion to $33 billion in just two years shows strong momentum. Several factors drive this expansion:

Regulatory advancements: Clearer rules and frameworks, especially in jurisdictions like the UK, have made tokenisation more viable and trustworthy.
Blockchain infrastructure maturity: Improved scalability, security, and interoperability have enabled platforms to support large-scale institutional deployments.
Institutional demand: Investors and issuers seek more efficient, transparent, and accessible ways to manage assets.

This growth means the industry focus has shifted. Instead of asking if tokenisation is possible, the question now is which platform components and providers best fit specific needs.

Types of Tokenisation Platforms

The tokenisation ecosystem has diversified into three main categories. Each serves a distinct role and suits different use cases:

Infrastructure Providers

These platforms build the foundational blockchain technology needed to tokenise assets. They focus on:

Creating secure, scalable blockchain networks
Ensuring interoperability between different systems
Supporting large institutional deployments

Infrastructure providers are essential for projects that require custom blockchain solutions or integration with existing financial systems.

Regulated Issuance and Trading Venues

These platforms act as officially regulated marketplaces for issuing and trading digital securities. Their key features include:

Compliance with regulatory standards to protect investors and issuers
Transparent issuance and trading processes
Trust-building through official oversight

Such venues are critical for projects that prioritise regulatory alignment and investor confidence.

Niche-Specific Platforms

These platforms specialise in particular asset classes or product types, such as:

Private credit
Real estate
Bond issuance
Tokenised funds

They offer tailored tools and regulatory expertise suited to their focus areas, making them ideal for issuers and investors with specific asset needs.

High angle view of a digital dashboard showing various asset classes tokenised on blockchain — Digital dashboard displaying tokenised asset classes, illustrating niche-specific platform capabilities

Leading RWA Tokenisation Platforms to Know

Several platforms stand out for their approach, technology, and market adoption. Here are three key examples:

Securitize

Securitize focuses on compliant issuance and lifecycle management of digital securities. It is widely adopted by issuers who require strong regulatory alignment. Key strengths include:

End-to-end compliance tools
Support for multiple asset classes
Integration with regulated trading venues

Securitize’s platform is a solid choice for founders and investors prioritising regulatory certainty.

Tokeny

Tokeny emphasises scalability and compliance for private market securities. It is known for versatility across different asset classes, including funds and real estate. Highlights include:

Modular platform components for flexible deployment
Strong compliance features tailored to private markets
Support for complex asset structures

Tokeny suits projects that need a scalable, adaptable solution with a focus on private market assets.

Polymath

Polymath took a unique approach by building its own dedicated blockchain called Polymesh. This platform is designed specifically for security tokens, offering:

A purpose-built blockchain optimised for compliance
Tools for token issuance, management, and trading
Focus on institutional-grade security and governance

Polymath appeals to users seeking a blockchain environment designed from the ground up for regulated digital securities.

Close-up view of a blockchain network diagram illustrating Polymesh architecture — Blockchain network diagram showing Polymesh architecture for security token issuance

Understanding the UK Regulatory Context

The UK has become a key jurisdiction for RWA tokenisation due to its evolving regulatory framework. Key points for founders and investors include:

Financial Conduct Authority (FCA) oversight: The FCA regulates digital securities and tokenised assets, ensuring investor protection.
Clear guidance on security tokens: The FCA classifies many tokenised assets as regulated securities, requiring compliance with existing financial laws.
Sandbox initiatives: The FCA’s regulatory sandbox allows innovative projects to test tokenisation solutions under supervision.
Anti-money laundering (AML) and know your customer (KYC) requirements: Platforms must implement strict AML/KYC processes to comply with UK law.

Choosing a platform that aligns with UK regulations reduces legal risks and builds investor trust.

How to Choose the Right Platform

Selecting the right tokenisation platform depends on your project’s goals, asset type, and regulatory environment. Consider these factors:

Regulatory compliance: Ensure the platform meets the legal requirements in your jurisdiction, especially if operating in the UK.
Asset class specialisation: Use niche platforms if your asset type requires specialised tools or expertise.
Scalability and interoperability: For large or complex projects, infrastructure providers or modular platforms offer flexibility.
Market access: Platforms with regulated trading venues provide better liquidity and investor confidence.
Technology architecture: Decide if you need a dedicated blockchain like Polymesh or prefer platforms built on existing blockchains.

Careful evaluation helps avoid costly mistakes and supports successful tokenisation.

Disclaimer:

This article is provided for general information only and does not constitute legal, financial, or investment advice. The regulatory treatment of tokenised assets and digital securities varies by jurisdiction and continues to evolve. Readers should seek independent professional advice before making any financial, legal, or regulatory decisions.