Tokenising Property

This article examines how the blockchain technology reshapes the traditional contract-property divide in private law, leveraging on the peculiar features of non-fungible tokens (NFTs) and real-world asset (RWA) tokenisation.
Building on foundational doctrines—in rem rights, the numerus clausus principle, and third-party notice—we show that blockchain enables the creation of de facto property entitlements, including exclusivity and enforceability
against subsequent transferees, without State involvement or adherence to traditional publicity requirements. We label this phenomenon “tokenising property.” Through illustrative examples, such as NFT royalties, we show how
on-chain entitlements may override or bypass the allocation of rights under existing property regimes, raising coordination and enforcement challenges. Using a transaction cost framework, we assess the conditions under which
tokenizing property can deliver efficiency gains and when it generates new frictions. Finally, we argue that blockchain regulation rather than private law reforms can reassert control over this new form of property by intervening directly in the technical layer of blockchain systems. This may help in ensuring consistency between tokenised entitlements and the broader legal order, as illustrated by the EU Data Act and the Liechtenstein Blockchain Act.