Tokenization Cost Estimator
Model the setup cost, ongoing annual cost, and break-even timeline across seven asset classes, ten jurisdictions, four structures, and three distribution paths. Built on institutional benchmarks, not vendor pricing.
A standalone legal entity holds the asset. Tokens represent shares in that entity. Most common path for real estate, private credit, and commodities.
Issue through Securitize, Tokeny, or Polymath. Lower setup and faster time to market, with the platform taking ongoing fees on assets under management.
Frequently Asked Questions
How much does it cost to tokenize an asset?
Costs vary widely by jurisdiction, structure, and investor base. Typical setup ranges from around 90,000 dollars in offshore jurisdictions like the British Virgin Islands to 250,000 dollars or more for a US Reg D 506(c) offering. Annual operating costs run from roughly 35,000 dollars to 80,000 dollars before structure premiums. Asset size, investor count, audit cadence, and ongoing reporting obligations drive most of the variation.
What is included in tokenization setup costs?
Setup typically covers legal entity formation (often an SPV), regulatory filings, smart contract development or platform licensing, KYC and AML onboarding, custody integration, audit, and initial distribution infrastructure. Marketing and investor relations are usually budgeted separately. Issuers using a turnkey platform like Securitize, Tokeny, or Polymath shift more of the cost from legal into platform fees.
Are tokenized issuance costs lower than traditional issuance?
At scale, typically yes. Tokenization tends to reduce intermediary fees, settlement costs, and ongoing transfer agent expenses. For raises under 5 million dollars, traditional private placement structures can still be cheaper. Above 25 million dollars, tokenized issuance usually breaks even within 12 to 24 months when measured against a comparable traditional baseline.
How long does it take to recover tokenization setup costs?
Break-even depends on asset size, jurisdiction, and the operational efficiency gain over the traditional baseline. Most institutional-grade tokenized funds recover setup within 18 to 36 months through reduced administration, faster settlement, and broader investor reach. Smaller raises in higher-cost jurisdictions can stretch beyond 48 months.
Estimates are modeled on institutional benchmarks and do not represent vendor quotes. Actual costs vary with counsel selection, platform pricing, asset complexity, and FX. Currency conversions use static reference rates and are for indicative use only. Confidence ranges reflect typical spread; outliers exist. This tool is for informational purposes only and is not legal, tax, or investment advice.