Real-world asset tokenization fails when treated as a product feature. It succeeds when treated as infrastructure with enforceable governance. Institutions need legal finality, operational control, and continuous accountability across the lifecycle. A token is not the asset. A token is a governed interface to asset rights, cashflows, and restrictions. The pipeline must therefore bind law, data, identity, payments, and smart contracts into one operating model. This article walks the end-to-end RWA tokenization pipeline using a property-backed SPV structure. The emphasis is process integrity, compliance enforcement, and auditability at scale. The objective is predictable issuance, controlled transfer, and durable investor protections. Stage 1: Identify and qualify the asset Tokenization begins with underwriting, not code. Screen value, location, title status, and income quality against defined eligibility criteria. Confirm the asset fits target investor mandates, leverage tolerance, and jurisdictional constraints. Document disqualifiers early, because remediation later becomes costly and slow. Stage 2: Sign the tokenization mandate A mandate creates contractual clarity before irreversible work begins. The Tokenization and Services Agreement should define scope, fees, timeline, and responsibilities. It should allocate liability for disclosure accuracy, document delivery, and operational cooperation. This step establishes accountability boundaries for each party in the issuance chain. Stage 3: Collect data and documents RWA tokens inherit the asset’s data quality and its legal defects. Gather deeds, leases, rent roll, financials, debt documents, appraisals, and corporate records. Collect stakeholder identities, beneficial ownership information, and signing authorities for each entity. Build a verifiable document repository with version control and access logs. Stage 4: Legal and regulatory check Compliance is not a gate at launch. It is a continuous constraint that shapes every downstream design decision. Determine the applicable securities regime, eligible investor categories, and transfer restrictions. Map required filings, exemptions, offering limits, and marketing constraints by jurisdiction. Define what must be disclosed, what must be verified, and what must be prohibited. Stage 5: Independent valuation Token economics must anchor to a defensible reference value. Obtain or refresh an independent valuation consistent with local standards and lender expectations. Align valuation assumptions with disclosed risks, lease terms, and property condition evidence. Treat valuation as a control point for both investor protection and platform credibility. Stage 6: Create the SPV The SPV is the legal container that makes tokenization legible to courts and regulators. Incorporate one dedicated SPV per asset to isolate liabilities and simplify governance. Define its directors, signing rights, audit obligations, and permitted actions in governing documents. The SPV’s operating model must anticipate refinancing, disputes, and investor communications. Stage 7: Transfer the property into the SPV The asset must move under the SPV’s legal title before token issuance. Execute sale or contribution mechanics consistent with tax, lender, and registry requirements. Record the transfer properly, because token holders rely on enforceable ownership chains. Confirm that liens, covenants, and lender consents match what will be disclosed. Stage 8: Define tokenization parameters Token parameters are a capital structure decision, not a technical preference. Decide the equity percentage to tokenize and the rights attached to token holders. Set token count, initial price, minimum commitments, and governance participation thresholds. Define reserve policies, treasury controls, and how unsold allocations remain with the owner. Stage 9: Draft the legal pack The legal pack is the primary interface between tokens and enforceable rights. Prepare the SPV shareholder or operating agreement with clear voting and information rights. Draft token terms and conditions that bind transfer restrictions and redemption mechanics. Include subscription agreements and an offering or information memorandum with complete risk factors. Ensure documents specify dispute resolution, recordkeeping standards, and reporting obligations. Stage 10: Design the compliance rules Compliance rules translate legal constraints into operational constraints. Define permitted jurisdictions, investor types, lockups, holding limits, and concentration thresholds. Specify secondary transfer requirements, including verified status and permitted venues. Predefine exception handling for court orders, lost keys, and sanctioned counterparties. Stage 11: Build or configure smart contracts Smart contracts should enforce rules, not improvise governance. Deploy an asset token contract paired with a compliance controller that mediates transfers. Wire the controller to rule sets aligned with the legal pack and registry requirements. Ensure admin privileges are constrained, logged, and recoverable through controlled procedures. Formalize upgrade paths and incident processes to avoid silent rule changes. Stage 12: Integrate KYC and AML Identity is the main perimeter for compliant transfer at scale. Connect onboarding to a KYC and AML provider with jurisdictional coverage and audit trails. Whitelist only verified wallets for the specific asset, not a generic platform status. Record verification outcomes, expiry dates, and adverse findings under defined retention policies. Stage 13: Set up payment rails Payments determine settlement risk, investor experience, and financial controls. Define accepted rails, including bank wires, stablecoins, and escrow flows where required. Specify how funds reach the SPV, how refunds occur, and how reconciliation is performed. Implement segregation of duties, approvals, and reporting aligned with regulated expectations. Stage 14: Launch the offering Launch is a disclosure event under governance, not a marketing moment. Publish terms, risk statements, governance rights, and token mechanics in consistent language. Control distribution channels to remain within permitted solicitation and investor targeting rules. Ensure all materials are traceable to approved versions in the document system. Stage 15: Onboard investors Onboarding must unify identity, consent, and suitability evidence. Investors register, complete KYC and AML checks, sign agreements, and provide wallet details. Capture representations, accreditation status where applicable, and jurisdictional attestations. Store acceptance artifacts so the platform can prove readiness during audits or disputes. Stage 16: Settle funds and mint or allocate tokens Issuance should follow confirmed funds, not optimistic commitments. After funds clear, the SPV confirms subscriptions and authorizes token allocations. Tokens transfer from treasury to whitelisted wallets under the compliance controller’s checks. The owner retains the non-sold portion under the same rule set and reporting regime. Stage 17: Update cap table and registry Token balances must reconcile with legal ownership records at all times. Synchronize on-chain balances with an off-chain investor registry that supports legal notices. Define which record prevails under conflict, and document that hierarchy in legal terms. Implement periodic reconciliation and exception workflows with documented sign-offs. Stage 18: Ongoing asset and investor management Tokenization creates permanent operational obligations for the SPV and platform. Operate the property, manage vendors, and maintain insurance, compliance, and reporting cadence. Provide investors with statements, documents, governance notices, and performance dashboards. Maintain change control for leases, debt, and material events under defined thresholds. Stage 19: Income distributions where applicable Distributions require accounting discipline and clear policies for timing and reserves. Calculate net income under disclosed methodology and confirm compliance with debt covenants. Distribute proceeds pro-rata to token holdings using approved rails and recorded confirmations. Log distributions in platform records to support audits, tax reporting, and investor disputes. Stage 20: Controlled secondary liquidity Secondary transfer is where most tokenization programs fail governance tests. Permit transfers only between verified investors who meet jurisdiction and suitability rules. Enforce restrictions through the compliance controller before any on-chain transfer settles. Integrate trade reporting, registry updates, and post-trade surveillance into the operating model. Stage 21: Exit and wind-down scenarios Exits must be pre-modeled, because forced improvisation creates legal exposure. On sale, refinance, or buyback, execute SPV actions strictly under documented approvals. Pay investors according to waterfall terms, then redeem or burn tokens as defined. If structure changes, update token terms only through documented governance procedures. A compliant RWA token is the output of disciplined infrastructure, not technical novelty. Governance precedes scale because scale without accountability becomes institutional liability. The durable advantage is not faster issuance, but reliable control across the full lifecycle. When the pipeline is treated as infrastructure, tokens become operable within regulated reality.