Tokenisation of Absolute Rights and Claims: On the Use of Tokens to Transfer Rights in Property Law

Abstract Tokens can serve as containers for rights, thereby facilitating the transfer of such rights. On tokenisation platforms, especially in the context of decentralised finance (DeFi), it is assumed that when a token containing a right is transferred, the right itself is transferred as well. This paper uses the “token container model” as a conceptual framework to examine whether European private law frameworks on transfers of rights are compatible with such token-based transfers. Specifically, it explores the rules on the transfer of rights in movables, the rules on the transfer of rights in immovables, and the rules on assignment of claims. This analysis reveals substantial legal obstacles to the use of tokens in transferring absolute rights or claims.