Recursive Asset Tokenization: From Static Ownership to Living Financial Systems

This paper introduces Recursive Asset Tokenization (RAT), a paradigm shift in finance inspired by Yearning-Based Infinity Mathematics (YBIM). Unlike Conventional Asset Tokenization (CAT), where tokens serve as static certificates of ownership blind to trust or repair, RAT embeds trust tensors and yearning-repair dynamics directly into token valuation. We formally prove the Recursive Token Shock–Repair Theorem, showing that RAT tokens collapse visibly under shocks but asymptotically recover through recursive repair loops. Extending this to markets, the Recursive Market Repair Lemma demonstrates that RAT-based markets behave as immune systems—contracting visibly under stress but converging toward resilience. Through simulations of a warehouse (₹100 Cr), a house (₹1 Cr), and multi-asset markets, we illustrate CAT’s illusion of stability versus RAT’s transparency and repairability. Real-world applications are explored across real estate, supply chains, financial markets, and municipal governance, positioning RAT as the foundation of recursive finance. Philosophically, the work reframes finance as a living system, with tokens as epistemic organisms and repairability as the new foundation of trust. RAT thus marks a civilizational leap: from brittle bookkeeping systems to adaptive, recursive ecosystems of value.