Imagine investing in a premium Central Otago vineyard, or owning a slice of prime Wellington commercial property, all without needing millions in upfront capital.
Through asset “tokenisation”, this is becoming a reality.
Essentially, tokenisation converts physical and financial assets into digital records, called tokens, which are stored using blockchain technology.
Some tokens represent ownership in the way or share certificates do. Others might be used for , to prevent scalping, or a means to make fast, low-cost .
The blockchain itself is basically a shared distributed across computers, with transactions linked into a cryptographic chain. This and makes tokenisation both trustworthy and efficient.
Why tokenise assets?
For decades, investing in has meant navigating lawyers, banks, brokers, registries, mountains of paperwork, hefty transaction costs and prohibitive minimum spends.
A $10 million commercial building, for example, might require investors to commit large proportions of the full amount, locking out all but the wealthiest buyers.
Tokenisation changes this equation for both buyers and sellers. That same building could be split into 100 digital tokens, each representing 1% ownership worth $100,000.
Like owning shares in a company, token holders benefit from rental income and property appreciation proportional to their stake. For sellers, it’s a way to raise capital by attracting many smaller investors rather than a few large ones.
Tokenisation is already happening
Digital assets are already woven into New Zealand’s economy. reports nearly NZ$8 billion of digital assets traded annually, with interest in digital assets becoming more common.
But New Zealand stands at an important juncture. Existing financial regulations weren’t designed with tokenisation in mind, meaning progress is slow and complex.
such as BlockchainNZ, the and warn that even slight changes in a token’s features can alter its legal classification, making compliance confusing and expensive.
Without clear rules, New Zealand risks losing billions to overseas markets offering greater regulatory certainty.
Global momentum is undeniable
Executives from multinational investment company BlackRock have today to the internet in 1996, something poised for explosive growth.
Accounting firm Deloitte projects US$4 trillion in global real estate , up from less than US$0.3 trillion in 2024.
In November 2025, Australia introduced , with Treasurer Jim Chalmers of A$24 billion.
Dubai launched its in May 2025, projecting US$16 billion in value by 2033. J.P. Morgan Asset Management has , a tokenised cash fund that invests in relatively safe short-term debt securities.
BlockChainNZ held New Zealand’s first in Auckland in July 2025. Industry analysis suggests of the domestic property market could unlock over NZ$60 billion in transaction volume.
New Zealand’s position
New Zealand has genuine advantages: internet penetration of the population; it is a member of the intergovernmental coalition; and it operates an established , ideal for .
The regulatory conversation is underway, with the Financial Markets Authority releasing a on tokenisation in September 2025.
But the Banking Association has : while existing laws are technology-neutral, they lack clarity for tokenised products.
It recommends legislative reviews, controlled testing of tokenised financial products, and guidance for industry participants and consumers on regulation and compliance.
Ultimately, New Zealand will need a cohesive framework that actively enables safe innovation. As one industry insider :
the rails for tokenisation are being laid now and if we don’t help build them, we’ll be forced to run on tracks designed by others.
Navigating the risks
Tokenisation also brings serious challenges. Local financial laws were written for paper certificates and bank vaults, not digital tokens and blockchain networks.
When an Auckland property developer tokenises an apartment building, or a Marlborough winery offers digital shares, which rules apply? Are these securities? Property titles? This uncertainty creates a .
Technology risks compound these problems: , digital key theft or loss, bugs or flaws in blockchain code that , and malfunctions in the technology infrastructure can all cause irreversible losses.
Energy-intensive blockchain systems , while can expose users to fraud and scams.
Tokenised assets can be highly volatile, with rapid price swings encouraging speculation and panic selling. Easy amplifies boom-and-bust cycles. When everyone can trade with a few clicks, rapidly.
The Financial Markets Authority that market manipulation becomes easier across multiple unregulated platforms, may be harder to detect in cross-border transactions, and fraud (from fake tokenised assets to ) can scale quickly.
None of this means tokenisation should (or can) be avoided. The challenge for New Zealand is to keep up with this form of financial innovation, and to retain investment dollars that might otherwise migrate to other jurisdictions.
Original article
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