From Analogue to Onchain: The Infrastructure Behind Tokenisation

From Analogue to Onchain: The Infrastructure Behind Tokenisation

In our last article, we explored what tokenisation means — turning real-world assets like bonds, funds, or real estate into digital tokens that live on a blockchain. Now, let’s look at how it actually works.

It starts with the real thing

Every tokenised asset begins in the real world — a piece of art, a share, a piece of property. Before it can exist on a blockchain, that real-world asset needs legal recognition in digital form. That means regulation: the law must say, “Yes, this digital token is legally the same as the real bond or share. Countries like Germany are already making this possible by allowing securities to be issued directly on a blockchain instead of on paper.

Then comes the digital layer

Once the legal part is in place, the asset can be turned into a token — a kind of “digital twin” that represents it on-chain. This is done through smart contracts, which are small pieces of computer code that define who owns the token, how it can be transferred, and what rights come with it. These smart contracts live on a blockchain, a shared digital ledger that records every transaction in a way that’s transparent and can’t be changed.

Trust moves from paperwork to code

In traditional finance, trust comes from middlemen — banks, notaries, and clearing houses. In tokenised finance, trust comes from infrastructure:

  • On-chain KYC (Know Your Customer) ensures every wallet belongs to a verified person or institution.
  • Compliance tools monitor transactions to meet legal standards such as anti–money laundering rules.
  • Transparent records make ownership and transfers easy to verify on the blockchain.

This means fewer intermediaries, faster transactions, and less room for error.

Why existing blockchains aren’t enough

Most blockchains today were built for open crypto use, not regulated finance. They’re great for decentralised apps, but they lack built-in tools for compliance, identity verification, or institutional access. For tokenisation to work at scale, we need infrastructure that combines blockchain efficiency with the safeguards and clarity financial institutions rely on.

Europe is building that foundation

Europe has a major advantage: clear regulation. That makes it the ideal place to build a new financial infrastructure that’s both innovative and compliant. Vision Chain aims to be at the centre of this progress. Vision Chain is designed for regulated assets from day one — with onchain KYC, transaction monitoring, and compliance features that make it safe for banks, asset managers, and institutions to issue and manage tokenised assets. By combining blockchain performance with compliance readiness, Vision Chain aims to create the kind of environment where tokenised assets can actually scale safely and transparently, for both individuals and institutions. It’s how Europe can lead the shift from analogue to digital finance — not by replacing the old system overnight, but by upgrading it piece by piece.

The takeaway

Tokenisation isn’t just about new types of assets — it’s about modernising the systems that power global finance. The same way the internet digitised communication, tokenisation is digitising ownership. And once that infrastructure is in place, the financial world will move faster, become more inclusive, and work more like the internet — open, connected, and built for everyone.

Disclaimer

Investing in digital assets carries risks, crypto is volatile. In extreme cases, the invested amount may be lost completely. This article does not constitute an investment advice or an invitation to conclude a transaction. In no way is performance or results guaranteed. You should keep yourself informed and understand the risks involved in buying and holding digital assets. This article is for general information purposes only and does not constitute investment advice, nor is it an offer or invitation to purchase any digital assets.

Furthermore, no representation or warranty, either expressed or implied, is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of this article or opinions contained herein.

Investing in crypto assets carries risks, and may not be suitable for all investors. Make sure to conduct your own research before making any investment.