Legal Treatment of Asset-Backed NFTs.
Learn how Asset-Backed NFTs fit into the US and international legal frameworks.
Asset-Backed NFT Legal Definition
An Asset Backed Non-Fungible Token is defined as the “Immutable Proof of Purchase Receipt of a Unique Identifiable Physical Asset or Unique Identifiable Completed Intellectual Property Right”, the “Asset”. The NFT in and of itself does not serve the function of a “Digital Asset” in its own right.
From our Experts
“Distinct from Asset Backed Securities, Asset Backed NFTs are not derivative, fractional rights to a basket of underlying assets which cannot be sold individually. Holders of Asset Backed NFTs own direct title to the physical asset that is stored safely and insured at a third party storage provider and can be redeemed at any time with their respective Asset Backed NFT claim receipt on the Roji platform”
The Details
- IRS Guidance on NFTs
The latest guidance of the IRS regarding NFTs supports Roji's business model of using NFTs to certify ownership of real-world assets.