Tokenize Your Business – Turn Your Idea into Capital

Tokenization

Tokenization is a concept that is gaining increasing importance in modern business, representing a new financial paradigm. Imagine you have an innovative business idea, you're planning to expand production or start a new project – but lack sufficient funds. A bank loan may be unavailable, complicated, expensive, or you simply don't want to burden your business with additional debt. In that case, tokenization can offer an efficient, fast, and flexible solution for raising capital. Although a relatively new term, especially in the local context, the Serbian legal framework has taken a proactive approach to this area, recognizing its potential for domestic businesses. In this blog post, we'll explore what tokenization is, what possibilities it offers, and how it's already being applied in practice – with a special focus on Serbia, but also on the potential of Bosnia and Herzegovina to position itself as a regional hub for digital assets.

What is Tokenization and a Digital Token?

Simply put, tokenization is a digitized process of issuing tokens on a blockchain, which contain a specific right. A digital token is an intangible property right that digitally represents one or more other property rights, ranging from the right to use services, to a share in profits, or ownership rights over movable or immovable property. The key difference between digital tokens and traditional instruments (e.g., shares) lies in their flexibility: owning a token doesn't necessarily imply ownership rights, but depending on the structure, it can represent a right to a service, income, interest, etc. There are several types of tokens: - Payment Tokens, - Security Tokens, - Utility Tokens, and - Hybrid Tokens.

Regulatory Framework in Serbia

With the adoption of the Digital Assets Law in 2021, Serbia became one of the first countries in Europe to legally regulate digital tokens and enable their legal issuance. Issuing digital assets does not require a license, but in the case of public advertising of the offer, prior approval of the “white paper” by the Securities Commission is required.

Successful Use Cases

Finspot

The most prominent example in Serbia is the company Finspot doo Belgrade, which was the first to issue digital tokens approved by the Securities Commission. The token functions like a digital bond – investors invest by purchasing the token and earn interest (up to 11.25% annually before tax). Investment is possible from as little as 10,000 RSD, and Finspot automatically calculates and pays capital income tax (15%). The FIN token is not traded on a secondary market – buying and selling is done exclusively through the issuer, at a nominal value of 1,000 RSD. This model offers a simple and legally regulated entry into the world of tokenization, while also contributing to the development of the real sector.

Treesury

To show you how broadly applicable tokenization is, let's take an example from agriculture. The Treesury token is a digital token in Serbia that links digital assets with physical assets – specifically, with hazelnut trees. It’s a digital green bond (security token) whose White Paper was approved by the Securities Commission. For every token purchased, one hazelnut tree is planted, and the investor gains a right to a share of the profits from selling the produce. The token is based on the Ethereum standard (ERC3643) and ensures full transparency, security, and regulatory compliance. Hazelnut trees begin to bear fruit in the fifth year after planting, with full yields expected three to four years later. The commercial life cycle of the orchard is estimated at around 40 years. When revenue is distributed evenly over this period, the average annual return on investment ranges from 12 to 15%, making this type of investment especially attractive – particularly considering the relative resilience of agricultural investments in times of global uncertainty, such as pandemics or geopolitical tensions. A major value of this model lies in the fact that, for the first time, investments in agriculture have become liquid. Investors who do not want to commit long-term can cash out earlier by selling their tokens on an OTC market or a regulated digital exchange, in accordance with the White Paper rules. This combination of flexibility, liquidity, and long-term yield makes tokenization one of the most modern approaches to financing and investing in agriculture, opening new possibilities for capital management.

Potential of Bosnia and Herzegovina

Bosnia and Herzegovina still lacks a law regulating digital assets or tokenization, but that doesn't mean this legal gap can’t become an opportunity. Flexible legal areas are often the best ground for developing innovation – as long as general civil law principles, particularly those of contract law, are respected, tokenization can already be applied through creative models. Businesses in BiH, especially startups, should recognize the enormous potential of tokenization as an alternative source of financing, independent of traditional banking instruments. Through tokens, development projects can be financed, services can be pre-sold, and loyalty systems can be created with customers. For countries like BiH, which have a developed IT sector and a strong diaspora, tokenization can serve as a tool for attracting investment and digitally transforming the economy. Cooperation between legal professionals, regulators, and businesses is needed to build a legal framework that enables safe and transparent use of this technology.

What Are the Business Advantages of Tokenization?

While we wait for a Digital Assets Law in Bosnia and Herzegovina, the business community can already begin piloting tokenization models, relying on existing legal mechanisms. This helps create a practical foundation that could encourage regulatory changes. Note: This text is for informational purposes only and does not constitute legal advice. Each case is unique and requires individual analysis.

For legal assistance tailored to your business, contact Nataša Tica Law Office at: natasa.tica@natasaticalawoffice.com. Whether you need legal support in digital assets, tokenization, corporate structures, or regulatory matters, we are here to help you find a solution that aligns with your goals.