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Wallet Tokenization is a foundational concept introduced by Enzyme. It enables businesses and institutions to transform their custody solutions into a tokenized infrastructure—capable of accepting deposits from selected participants or offering open access to any depositor. At the heart of this approach, Enzyme Vaults serve as the tokenization layer, facilitating deposits and redemptions.
Unlike other tokenized infrastructure solutions, Wallet Tokenization empowers the creation of tokenized systems where the wallet retains full custody of all assets. Because custody remains entirely within the wallet, Enzyme's foundational approach naturally extends to support cross-chain functionality and ensures native compatibility with a wide range of digital assets—including cryptocurrencies, real-world assets, fund shares, NFTs, and more.
Since custody is maintained by the wallet, project owners can leverage their existing custody setup to directly interact with any protocol across any chain. This architecture also supports delegation, allowing project owners to assign management responsibilities to third parties by utilizing wallet-native capabilities—such as Zodiac modules for Safe.
Tokenization is achieved by deploying an Enzyme Vault on top of the wallet of your choice. This Enzyme Vault smart contract handles deposits and redemptions in any assets, while automatically issuing ERC-20 tokens that represent each depositor's share in the tokenized solution. Upon deposit, assets are seamlessly transferred to the designated wallet, which retains full custody. To preserve the integrity of the Vault, deposits and redemptions are processed through a queuing system.
To give project owners unrestricted asset management capabilities, Wallet Tokenization is built on a non-continuous valuation model. Rather than enforcing real-time valuations, the Net Asset Value (NAV) and share price of the Enzyme Vault are updated on a non-continuous basis. This approach offers project owners the flexibility—and responsibility—to perform valuations at their own pace using Enzyme’s built-in tools or their own solution. Fee structures are equally adaptable, enabling fully customized cost models aligned with each project's specific operational needs.
