Asset tokenization is highly anticipated but has been stuck in the swamp of concepts. Why is that? Ultimately, three practical issues remain unresolved: how to verify offline asset rights, how to protect investors' funds, and how to achieve regulatory transparency. The Dusk project has already tokenized $300 million worth of assets on the blockchain and has developed a feasible approach—combining technology, compliance, and custody.

Let's start with rights verification. Traditional methods have obvious flaws; tokens on the chain do not match the actual offline assets, and risks like "multiple pledges for one asset" and "white elephant" can cause sudden failures. Dusk's approach is to collaborate with EU-certified third-party custodians, where ownership certificates for offline assets are stored in compliant custody vaults, and on-chain tokens serve only as trading certificates. Smarter still, they automate this process with smart contracts—once tokens are issued, rights are established, with each token representing a specific share of the offline asset. The custodian continuously updates asset valuation and income data, which are synchronized on-chain in real-time via Chainlink oracles.

The case of real estate tokenization on the NPEX exchange makes this clear. Investors buy tokens that directly correspond to ownership shares of a commercial building in Amsterdam, with monthly rental income automatically distributed by smart contracts. This completely dispels doubts about the authenticity of the assets.

Fund security is another unavoidable hurdle. This system ensures that investors' principal funds are not diverted by the project team, as the custodian acts as an independent third party overseeing the entire process, and every fund flow on the chain is traceable.