Last updated: 5 August 2026.
Quick answer. Token capital issuance allows a startup to issue digital tokens representing shares or units of the company through blockchain technology, which ensures the security, immutability and transparency of transactions. Its main advantages are global access to finance, agility and lower transaction costs by eliminating intermediaries, enhanced liquidity of tokens on specialised secondary trading platforms, and flexibility in structuring the offer. Tokens may embody different rights in the company and can be security tokens or utility tokens. The process begins with a planning and preparation phase, starting with an assessment of the company’s financing strategy, and must be conducted within the applicable legal framework to be carried out safely and effectively.
Introduction:
Issuing equity with tokens has become an increasingly popular option for startups in the digital age. In this article, ILP Abogados offers you a comprehensive guide to carry out this process safely and effectively.
What is token equity issuance?
Token equity issuance is a process whereby a company issues digital tokens representing shares or units of the company. These tokens are issued through an underlying technology, commonly blockchain, which ensures the security, immutability and transparency of transactions. The digital tokens are decentralised and stored in nodes on the blockchain.
What are its characteristics?
- Technological innovation: Equity token issuance leverages blockchain technology to create and manage digital assets in a decentralised manner, eliminating the need for traditional intermediaries. The blockchain ensures transparency, security and immutability of transactions, providing confidence to both issuers and investors.
- Token diversity: Issued tokens can represent a variety of rights to the company. In addition, there are different types of tokens, such as security tokens or utility tokens.
- Global Access to Finance: Token issuance allows companies to access a broader base of potential investors, who can participate in the token offering from anywhere in the world.
- Agility and Efficiency in Financing: The token issuance process is more agile and efficient compared to traditional funding methods. Transaction costs and times are reduced, as intermediaries are eliminated and processes are automated.
- Enhanced liquidity and tradability: Digital tokens are easily transferable and tradable on specialised exchange platforms. Buying and selling tokens on secondary markets is facilitated, allowing investors to diversify their portfolios and manage their risk more effectively.
- Flexibility and Adaptability: Token issuance offers flexibility in terms of structuring and design of the offer, allowing companies to tailor it to their specific needs.
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Tokenisation of Business Projects: Opportunities and Legal Challenges
What is the process of issuing equity with tokens?
Planning and Preparation
- Assessment of the financing strategy: First, the company’s financial situation must be analysed, including its short, medium and long-term capital needs. Such planning involves an assessment of available financing alternatives and the identification of the specific objectives to be achieved through the issuance of tokens, such as financing product development, expanding the scope of the business or acquiring strategic assets.
- Definition of objectives and terms: Clear and measurable goals for the token issuance should be established, including the amount of capital to be allocated to the token offering and the expected time period for the transaction. Furthermore, the terms and conditions of the offering should be determined, such as the price of the tokens, the percentage of ownership offered and the rights associated with the ownership of the tokens, considering important aspects such as the liquidity of the tokens, lock-up periods and transfer restrictions.
- Strategic planning: It is important that a strategy is developed to promote the issuance of tokens and attract potential investors. To this end, the most appropriate distribution channels should be identified. Finally, it is important to have a detailed calendar with key dates for the issuance process.
- Risk management and compliance: There are certain risks associated with the issuance of tokens that must be assessed, such as market volatility and applicable regulation. To mitigate these risks, internal control and risk management measures must be implemented to mitigate threats and ensure the security of the funds.
Issuing equity with tokens can be a powerful tool for the growth and financing of your startup, but it is crucial to approach it from a solid legal perspective. At ILP Abogados we are here to guide you through every step of the process.
If you liked this article, you may also find it interesting to read the following one:
Tax Implications of Tokenization: Practical Guide
For advice applied to your case, see our Startups practice area.
Don’t be left in doubt, get in touch. We’ll be happy to help and offer you solutions.
Frequently asked questions
It is a process whereby a company issues digital tokens representing shares or units of the company. The tokens are created through an underlying technology, commonly blockchain, which ensures the security, immutability and transparency of transactions, and they are stored in a decentralised way in nodes on the blockchain.
Issued tokens can represent a variety of rights in the company, and there are different types, such as security tokens and utility tokens. This diversity allows the offering to be structured and designed flexibly, tailored to the specific needs of each company.
It gives access to a broader, global base of potential investors, who can participate from anywhere in the world; it reduces transaction costs and times by eliminating intermediaries and automating processes; and it offers flexibility in the structuring and design of the offer, making it more agile and efficient than traditional funding methods.
Yes. Digital tokens are easily transferable and can be traded on specialised exchange platforms. Buying and selling tokens on secondary markets is facilitated, which allows investors to diversify their portfolios and manage their risk more effectively.
It begins with a planning and preparation phase, whose first step is the assessment of the company’s financing strategy and financial situation, before designing and structuring the token offering with the appropriate legal support.
Contact
Don’t be left in doubt, get in touch. We’ll be happy to help and offer you solutions.
Related tool, free to use: the RWA tokenisation simulator and token issuance check.
