Two years into a five-year property fund, an investor wants their money back. Their holding appears as tokens in a digital wallet, but the buildings remain unsold. Can they sell the tokens, or must the fund pay them?
The business setting up the fund, known as the sponsor, needs an answer before launch. Tokenisation may improve how investments are recorded and transferred, but it does not itself create withdrawal rights or willing buyers. Its value depends on improving the investment process without promising more than the fund can deliver.
To answer the investor’s question, we first need to understand what they own. That determines who can buy the investment, how it is held and what must happen before the investor can receive their money back.
