How Do Tokenized Securities Leverage the Fungible Standard While Adhering to Fractional Ownership Rules?
Tokenized securities, often using a modified ERC-20 or a compliance-focused standard, use the fungible nature to represent fractional ownership of a larger asset, like a share of stock or real estate. Each token is a claim on an equal fraction of the underlying asset.
The smart contract ensures the total number of tokens equals the total asset value and manages the distribution of dividends or interest based on token holdings.
