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Why Stellar is perfect for tokenizing assets
Why Stellar is perfect for tokenizing assets

Tokenizing assets on Stellar

Written by Connor Macdougall
Updated over a week ago

The two main features of Stellar that make tokenizing assets on Stellar attractive are the low fees associated with creating and issuing assets as well the relatively simple native network features which support representing any other asset in digital form on the Stellar network. Once an asset is tokenized on Stellar it is given a global reach through the Stellar network.
This simple mechanism used for tokenizing assets is called a trustline which is used to represent any real world asset in the form of credit. This trustline is a statement from one Stellar account to the network that it trusts another Stellar account, the issuer of the asset, to be beholden to any credit obligations should the digital form of the asset be sent back to the issuer.

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