What 'Native Tokenization' Actually Means & Why Ethereum is the Logical Choice for It
Native tokenization makes the blockchain itself the legal stock ledger, with the token constituting the security under Delaware law. Pointer tokenization merely references offchain records, preserving transfer-agent dependency and counterparty risk. Constitutive tokenization enables seamless onchain liquidation and ownership finality. Ethereum is best suited due to mature standards, persistence, and privacy infrastructure.
Native tokenization means constitutive tokenization where the blockchain itself serves as the official stock ledger under DGCL §224. The ERC-721 token IS the uncertificated security. Pointer tokenization like Tokenized GLXY uses an offchain transfer agent register. The Solana token merely attests to Superstate’s books and fails the walkaway test. Pointer enables some DeFi composability but inherits transfer agent trust, limits liquidators to allowlisted parties, and adds counterparty risk in liquidations. Constitutive unifies legal record and chain state for seamless onchain liquidation, open liquidator participation via smart contract rules, and definitive ownership without TA cooperation. Ethereum fits constitutive tokenization best due to persistent storage, ERC-721 standards, and advanced privacy primitives for PII.