In the world of crowdfunding and the digitization of assets, the concepts of crowdfunding and tokenization platforms are often confused.
Although both allow investors to access assets on a fractional basis, there are fundamental differences, especially in the legal and operational framework.
This article explains what both models consist of, their key differences, and how European regulation, with figures such as ERIR, influences its operation.
What is a crowdfunding platform
A crowdfunding platform acts as an intermediary so that promoters (third parties) can offer investment projects to a community of investors.
Key Features
- El property or asset always belongs to a third party, never to the platform itself.
- The platform makes it easy to raise funds for real estate, business or social projects.
- Requires a specific license to operate, since it involves managing funds and attracting public investment under strict financial regulation.
What is a tokenization platform
A tokenization platform, on the other hand, is a system for issuing and managing digital tokens that represent real assets, such as real estate, debt or commodities.
Key Features
- El property or asset may be owned by the platform itself broadcaster or third party, but the platform plays an active role as owner or issuer.
- Emit Security Tokens or security tokens that represent rights to the tokenized asset.
- It is usually easier to launch than traditional crowdfunding because, in many cases, it is enough for the platform to be regulated to issue tokens under the supervision of the Entity Responsible for Registration and Enrollment (ERIR), without the need for a crowdfunding license.
Practical example: Real estate
To understand the difference, let's imagine two cases:
- On a platform of Tokenization, the tokenized property is owned by the platform. Investors buy tokens that represent a fraction of the property, with regulated and officially registered rights.
- On a platform of real estate crowdfunding, the property always belongs to a third party developer who seeks funding to develop or sell it. The platform only facilitates the connection between promoter and investors, without owning the asset.
Differences in regulation and licensing
- Crowdfunding platforms require specific licenses to raise funds from third parties and manage collective investments. This implies high legal and supervisory requirements on the part of entities such as the CNMV in Spain.
- Tokenization platforms they can operate with fewer barriers if they issue tokens under a regulated framework, such as tokenization supervised by the ERIR, which guarantees the registration and unique registration of digital securities without the need for a crowdfunding license.
Which model to choose?
The decision depends on the type of project and the issuance strategy:
- For projects that seek to raise funds from multiple investors through third parties, regulated crowdfunding is the appropriate option, although more complex to implement.
- For companies or platforms that want to issue their own tokenized assets or manage assets under a regulated framework, ERIR-supervised tokenization offers a more agile and efficient way.
Conclusion
Although crowdfunding and tokenization share the objective of democratizing access to assets, their differences are clear in asset ownership, regulation and operational complexity.
Tokenization, supported by European regulation and ERIR oversight, opens up new opportunities to issue digital assets securely and efficiently.
If you want advice on how to implement any of these models in accordance with current regulations, we can help you plan the best path.