In the ever-evolving world of blockchain technology, a new challenge emerges: ensuring seamless succession for tokenized property in the face of life’s unpredictable events. As of June 2025, industry experts are grappling with how to secure these digital assets, particularly when owners face death, divorce, or even the mundane loss of keys. The aim is clear—integrate automated succession protocols to safeguard and democratize Real World Asset (RWA) ownership on the blockchain.
The Succession Conundrum
Tokenized property, a burgeoning sector in the blockchain universe, promises to revolutionize how we perceive ownership. Yet, the absence of robust succession frameworks casts a shadow over its potential. “Without a clear path for asset transfer upon an unforeseen event, the promise of democratized ownership remains only partially fulfilled,” notes Dr. Alex Morgan, a leading blockchain analyst. This challenge is echoed in the broader context of tokenized assets, as seen in Franklin Templeton’s launch of ‘intraday yield’ for tokenized assets on Benji, highlighting the growing interest and complexity in managing these digital assets.
The traditional means of transferring property rights—wills, legal interventions, and family agreements—appear clunky when juxtaposed with the sleek efficiency of blockchain transactions. The decentralized nature of blockchain, while offering security and transparency, complicates the process when ‘what ifs’ become realities.
Challenges and Opportunities
Here’s the catch: integrating a succession mechanism within a decentralized framework is no small feat. Blockchain’s immutability, its greatest strength, can also be a stumbling block. Once a transaction is recorded, altering it without consensus is virtually impossible. This is where smart contracts come into play.
Smart contracts, self-executing with the terms of the agreement directly written into lines of code, could potentially automate succession. However, the nuances of personal relationships and legal variances across jurisdictions raise questions about their efficacy. “Relying solely on code to interpret complex human relationships is fraught with risk,” cautions Emily Tan, a blockchain legal expert. She emphasizes the need for a hybrid model—one that blends automated processes with human oversight.
Navigating the Legal Labyrinth
The legal landscape surrounding tokenized assets is as varied as it is complex. Different jurisdictions have different regulations, and there’s no one-size-fits-all solution. “What works in Singapore might not be applicable in Germany,” says Raj Patel, a fintech consultant. This patchwork of laws can deter investors wary of potential legal entanglements. The recent tokenization of a $75M oil and gas deal in Latin America exemplifies the momentum and challenges faced by RWAs in diverse legal environments.
The industry is watching closely as countries like Switzerland lead the charge in establishing blockchain-friendly legal frameworks. Their approach could serve as a model for others, providing a glimpse into what global standards might look like. However, Patel warns that “even the most progressive legislation can’t foresee every possible scenario.”
Looking Ahead
The future of tokenized property hinges on overcoming these hurdles. As we navigate this brave new world, the stakes are high. The potential for blockchain to democratize property ownership is immense, but only if it can address the fundamental question of succession. Could a universal standard emerge, bridging the gap between code and human intricacies? Or will we see a mosaic of solutions tailored to individual needs and jurisdictions?
While the answers remain elusive, the conversation is gaining momentum. As blockchain technology continues to disrupt traditional paradigms, its ability to adapt to life’s unpredictabilities will determine its true impact on the world of property ownership. The road ahead is uncertain, but one thing is clear: the dialogue around succession in tokenized property is just beginning.
Source
This article is based on: Death, divorce and lost keys: The question of succession in tokenized property
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
