Hedera
  • Welcome to Hedera — let’s build the future
  • Getting Started
    • Environment Setup
    • Web2 Developers
      • Transfer HBAR
      • Create a Token
      • Create a Topic
    • EVM Developers
      • Deploy a Contract
  • Tutorials
    • Smart Contracts
      • How to Mint & Burn an ERC-721 Token Using Hardhat and Ethers (Part 1)
      • How to Set Access Control, a Token URI, Pause, and Transfer an ERC-721 Token Using Hardhat (Part 2)
      • How to Upgrade an ERC-721 Token with OpenZeppelin UUPS Proxies and Hardhat (Part 3)
      • How to Verify a Smart Contract on HashScan
      • Deploy a Smart Contract Using Remix
      • Deploy a Smart Contract Using Hardhat and Hiero JSON-RPC Relay
      • Deploy Your First Smart Contract
      • Deploy a Contract Using the Hedera Token Service
      • Send and Receive HBAR Using Solidity Smart Contracts
      • Deploy By Leveraging Ethereum Developer Tools On Hedera
      • Deploy a Subgraph Using The Graph and Hedera JSON-RPC Relay
      • Deploy Smart Contracts on Hedera Using Truffle
      • The Power of Native Hedera Tokens as ERC-20 Tokens: A step-by-step guide
      • HTS x EVM - Part 1: How to Mint NFTs
      • HTS x EVM - Part 2: KYC & Update
      • HTS x EVM - Part 3: How to Pause, Freeze, Wipe, and Delete NFTs
      • Hedera Smart Contracts Workshop
        • Setup
        • Solidity
        • Hedera SDK JS
        • Hardhat and EthersJs
        • Outro
      • Foundry
        • How to Setup Foundry and Write a Basic Unit Test
        • How to Deploy and Verify a Hedera Smart Contract with Foundry
        • How to Test A Solidity Event
        • How to Fork Testnet on Latest Block
    • Consensus
      • Submit Your First Message
      • Submit Message to Private Topic
      • Query Messages with Mirror Node
    • Tokens
      • Create and Transfer Your First NFT
      • Create and Transfer Your First Fungible Token
      • Create and Transfer an NFT using a Solidity Contract
      • Structure Your Token Metadata Using JSON Schema V2
      • Hedera Token Service - Part 1: How to Mint NFTs
      • Hedera Token Service - Part 2: KYC, Update, and Scheduled Transactions
      • Hedera Token Service - Part 3: How to Pause, Freeze, Wipe, and Delete NFTs
      • Create Your First Frictionless Airdrop Campaign
    • Local Node
      • How to Run Hedera Local Node in a Cloud Development Environment (CDE)
        • Run a Local Node in Gitpod
        • Run a Local Node in Codespaces
      • How to Set Up a Hedera Local Node
      • Set Up a Hedera Local Node using the NPM CLI
    • More Tutorials
      • Create and Fund Your Hedera Testnet Account
      • How to Create a Personal Access Token (API Key) on the Hedera Portal
      • How to Auto-Create Hedera Accounts with HBAR and Token Transfers
      • How to Configure a Mirror Node and Query Data
      • How to Generate a Random Number on Hedera
      • Get Started with the Hedera Consensus Service Fabric Plugin
        • Virtual Environment Setup
      • Schedule Your First Transaction
      • How to Connect to Hedera Networks Over RPC
        • Configuring Hashio RPC endpoints
        • Configuring Hiero JSON-RPC Relay endpoints
        • Configuring Validation Cloud RPC endpoints
      • JavaScript Testing
      • Create a Hedera DApp Integrated with WalletConnect
      • How to Connect MetaMask to Hedera
    • Demo Applications
    • Starter Projects
    • Building on Hedera (course)
  • Networks
    • Mainnet
      • Mainnet Accounts
      • Mainnet Consensus Nodes
        • Node Requirements
          • FAQ
      • Fees
        • Transaction Records
    • Testnets
      • Testnet Accounts
      • Testnet Consensus Nodes
    • Localnet
      • Single Node Configuration
      • Multinode Configuration
    • Network Explorers and Tools
    • Release Notes
      • Consensus Node
      • Hedera Mirror Node
  • Core Concepts
    • Accounts
      • Account Creation
      • Auto Account Creation
      • Account Properties
    • Keys and Signatures
    • Schedule Transaction
    • Smart Contracts
      • Understanding Hedera's EVM Differences and Compatibility
        • For EVM Developers Migrating to Hedera
          • Accounts, Signature Verification & Keys (ECDSA vs. ED25519)
          • JSON-RPC Relay and EVM Tooling
          • Token Management with Hedera Token Service
          • Decimal Handling (8 vs. 18 Decimals)
          • Handling HBAR Transfers in Contracts
        • For Hedera-Native Developers Adding Smart Contract Functionality
          • Integrating ED25519 Accounts and Advanced Features Into Smart Contracts
          • JSON-RPC Relay and State Queries
          • Extending Token Management with Smart Contracts
      • Creating Smart Contracts
      • Compiling Smart Contracts
      • System Smart Contracts
        • Hedera Account Service
        • Hedera Schedule Service
      • Gas and Fees
      • JSON-RPC Relay
      • Deploying Smart Contracts
      • Smart Contract Addresses
      • Verifying Smart Contracts
      • Smart Contract Traceability
      • Tokens Managed by Smart Contracts
        • ERC-20 (Fungible Tokens)
        • ERC-721 (Non-Fungible Token)
        • ERC-3643 Real World Assets (RWA)
        • ERC-1363 (Payable Tokens)
        • Hedera Token Service System Contract
      • Wrapped HBAR (WHBAR)
      • Smart Contract Rent
      • Smart Contract Security
      • EVM Archive Node Queries
    • Tokens
      • Tokenization on Hedera
      • Hedera Token Service (HTS) Native Tokenization
        • Token Types and ID Formats
        • Token Properties
        • Token Creation
        • Custom Fee Schedule
        • Token Airdrops
      • ERC/EVM-Compatible Tokenization
      • Hybrid (HTS + EVM ) Tokenization
    • Staking
      • Staking Program
      • Stake HBAR
    • Hashgraph Consensus Algorithm
      • Gossip About Gossip
      • Virtual Voting
    • Transactions and Queries
      • Transaction Properties
    • State and History
    • Mirror Nodes
      • Hedera Mirror Node
      • One Click Mirror Node Deployment
      • Run Your Own Mirror Node
        • Run Your Own Mirror Node with Google Cloud Storage (GCS)
        • Run Your Mirror Node with Amazon Web Services S3 (AWS)
  • Open Source Solutions and Integrations
    • AI Studio on Hedera
      • ElizaOS Plugin for Hedera
      • Hedera AI Agent Kit
      • MCP Server
      • OpenConvAI
    • AI Tools for Developers
      • Hedera Hivemind
      • Kapa AI
    • Asset Tokenization Studio (ATS)
      • Web User Interface (UI)
      • Frequently Asked Questions (FAQs)
    • HashioDAO
      • Governance Token DAO
      • NFT DAO
      • Multisig DAO
      • DAO Proposals
      • Local Environment Setup
    • Hedera CLI
    • Hedera Contract Builder
    • Hedera Custodians Library
      • How to use it
    • Hedera Developers Code Repository
    • Hedera Developer Playground
    • Hedera Wallet Snap By MetaMask
      • Hedera Wallet Snap Documentation
      • Tutorial: MetaMask Snaps – What Are They and How to Use Them
    • Interoperability and Bridging
      • LayerZero
    • NFT Studio
      • Airdrop List Verifier
      • Metadata Validator
      • NFT Rarity Inspector
      • NFT Token Holders List Builder
      • NFT Risk Calculator
      • Token Balance Snapshot
      • Hedera NFT SDK
    • Oracle Networks
      • Chainlink Oracles
      • Pyth Oracles
      • Supra Oracles
    • Stablecoin Studio
      • Core Concepts
      • Web UI Application
      • CLI Management
      • TypeScript SDK
    • Hedera Guardian
    • Hedera WalletConnect
  • SDKs & APIs
    • SDKs
      • Build Your Hedera Client
      • Set Up Your Local Network
      • Network Address Book
      • Keys
        • Generate a new key pair
        • Import an existing key
        • Create a key list
        • Create a threshold key
        • Generate a mnemonic phrase
        • Recover keys from a mnemonic phrase
      • HBAR
      • Specialized Types
      • Pseudorandom Number Generator
      • Transactions
        • Create a Batch Transaction
        • Transaction ID
        • Modify transaction fields
        • Create an unsigned transaction
        • Manually sign a transaction
        • Submit a transaction
        • Sign a multisignature transaction
        • Get a transaction receipt
        • Get a transaction record
      • Schedule Transaction
        • Schedule ID
        • Create a schedule transaction
        • Sign a scheduled transaction
        • Delete a schedule transaction
        • Get schedule info
        • Network Response Messages
      • Queries
      • General Network Response Messages
      • Accounts and HBAR
        • Create an account
        • Update an account
        • Transfer cryptocurrency
        • Approve an allowance
        • Delete an allowance
        • Delete an account
        • Get account balance
        • Get account info
        • Network Response Messages
      • Consensus Service
        • Create a topic
        • Update a topic
        • Submit a message
        • Delete a topic
        • Get topic messages
        • Get topic info
        • Network Response
      • Token Service
        • Token ID
        • NFT ID
        • Token types
        • Create a token
        • Custom token fees
        • Update a token
        • Update token custom fees
        • Update NFT metadata
        • Transfer tokens
        • Airdrop a token
        • Claim a token
        • Cancel a token
        • Reject a token
        • Delete a token
        • Mint a token
        • Burn a token
        • Freeze an account
        • Unfreeze an account
        • Enable KYC account flag
        • Disable KYC account flag
        • Associate tokens to an account
        • Dissociate tokens from an account
        • Pause a token
        • Unpause a token
        • Wipe a token
        • Atomic swaps
        • Get account token balance
        • Get token info
        • Get NFT info
        • Network Response Messages
      • File Service
        • Create a file
        • Append to a file
        • Update a file
        • Delete a file
        • Get file contents
        • Get file info
        • Network Response Messages
      • Smart Contract Service
        • Delegate Contract ID
        • Create a smart contract
        • Update a smart contract
        • Delete a smart contract
        • Call a smart contract function
        • Ethereum transaction
        • Get a smart contract function
        • Get smart contract bytecode
        • Get smart contract info
        • Hedera Service Solidity Libraries
        • Network Response Messages
      • Signature Provider
        • Provider
        • Signer
        • Wallet
        • Local Provider
    • Mirror Node REST API
      • Accounts
      • Balances
      • Blocks
      • Schedule Transactions
      • Smart Contracts
      • Tokens
      • Topics
      • Transactions
      • Network
    • Hedera Consensus Service gRPC API
    • Hedera APIs
      • Basic Types
        • AccountAmount
        • AccountID
        • ContractID
        • CryptoAllowance
        • CurrentAndNextFeeSchedule
        • FeeComponents
        • FeeData
        • FeeSchedule
        • FileID
        • Fraction
        • HederaFunctionality
        • Key
        • KeyList
        • NftAllowance
        • NftTransfer
        • NodeAddress
        • NodeAddressBook
        • RealmID
        • ScheduleID
        • SemanticVersion
        • ServicesConfigurationList
        • ServiceEndpoint
        • Setting
        • ShardID
        • Signature
        • SignatureList
        • SignatureMap
        • SignaturePair
        • SubType
        • TransferList
        • TransactionID
        • ThresholdKey
        • ThresholdSignature
        • TokenAllowance
        • TokenBalance
        • TokenBalances
        • TokenFreezeStatus
        • TokenPauseStatus
        • TokenID
        • TokenKycStatus
        • TokenRelationship
        • TokenTransferList
        • TokenType
        • TokenSupplyType
        • TopicID
        • TransactionFeeSchedule
      • Cryptocurrency Accounts
        • CryptoService
        • CryptApproveAllowance
        • CryptoDeleteAllowance
        • CryptoCreate
        • CryptoTransfer
        • CryptoUpdate
        • CryptoDelete
        • CryptoGetAccountBalance
        • CryptoGetAccountRecords
        • CryptoGetInfo
        • CryptoGetStakers
      • Consensus Service
        • Consensus Service
        • ConsensusCreateTopic
        • ConsensusUpdateTopic
        • ConsensusSubmitMessage
        • ConsensusDeleteTopic
        • ConsensusTopicInfo
        • ConsensusGetTopicInfo
      • Schedule Service
        • ScheduleService
        • SchedulableTransactionBody
        • ScheduleCreate
        • ScheduleDelete
        • ScheduleSign
        • ScheduleGetInfo
      • Token Service
        • TokenService
        • CustomFees
          • AssessedCustomFee
          • CustomFee
          • FractionalFee
          • FixedFee
          • RoyaltyFee
        • TokenCreate
        • TokenUpdate
        • TokenFeeScheduleUpdate
        • TokenDelete
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        • TokenGrantKyc
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        • TokenDissociate
        • TokenWipeAccount
        • TokenPause
        • TokenUnpause
        • TokenGetInfo
        • TokenGetNftInfo
        • TokenGetNftInfos
        • TokenGetAccountNftInfo
      • File Service
        • FileService
        • FileCreate
        • FileAppend
        • FileUpdate
        • FileDelete
        • FileGetContents
        • FileGetInfo
      • Smart Contracts
        • SmartContractService
        • ContractCall
        • ContractCallLocal
        • ContractCreate
        • ContractUpdate
        • ContractDelete
        • ContractGetByteCode
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        • ContractGetRecords
      • Miscellaneous
        • Duration
        • ExchangeRate
        • Freeze
        • FreezeType
        • GetByKey
        • GetBySolidityID
        • NetworkGetVersionInfo
        • NetworkService
        • Query
        • QueryHeader
        • Response
        • ResponseCode
        • ResponseHeader
        • SystemDelete
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        • TimeStamp
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        • TransactionBody
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        • TransactionReceipt
        • TransactionRecord
        • TransactionResponse
        • UncheckedSubmit
    • Hedera Status API
  • Support & Community
    • Glossary
    • Contributing to Hedera documentation
      • Contribution Guidelines
        • Creating Issues
        • Creating Pull Requests
        • Hedera Improvement Proposal (HIP)
        • Submit Demo Applications
      • Style Guide
        • Understanding different types of documentation
        • Use of HBAR and tinybars
        • Use of web2 and web3
        • Language and grammar
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    • Discord
    • GitHub
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    • Hedera Blog
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    • Documentation Survey
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INTRODUCTION

  • Fees
  • Core Concepts
  • Network Information

TOOLS

  • Bridge
  • Oracles
  • Explorers
  • Developer Portal & Faucet

RESOURCES

  • Status
  • Bug Bounty
  • Build on Hedera (course)
  • Documentation Survey
On this page
  • Overview
  • Tokenization Models
  • Tokenization Quick Reference Summary
  • 1. Hedera Token Service (HTS) - Native Tokenization
  • 2. ERC/EVM Tokenization (EVM-Compatible Standards)
  • 3. Hybrid Tokenization – Combining HTS with EVM Smart Contracts
  • Tokenomics & Fee Structure
  • Additional Resources

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  1. Core Concepts
  2. Tokens

Tokenization on Hedera

PreviousTokensNextHedera Token Service (HTS) Native Tokenization

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Overview

Tokens on Hedera represent digital assets that users can create, manage, and transfer through the Hedera Token Service (HTS). HTS supports both fungible tokens (e.g., stablecoins, loyalty points) and non-fungible tokens (NFTs) for collectibles, real-world assets (RWAs), and more. Built on Hedera’s high-performance hashgraph, tokens benefit from low, predictable fees, built-in compliance features, and cross-chain interoperability, making them ideal for enterprise and web3 applications.

Tokenization Models

Hedera supports three tokenization approaches, allowing developers to choose the best fit for their use case:

Tokenization Quick Reference Summary

Feature
HTS Native Tokenization
ERC/EVM Tokenization
Hybrid Tokenization

Smart Contracts Required

No

Yes

Optional (HTS + EVM)

Cost Efficiency

Low fees, fixed-cost transactions

Higher gas fees

Lower fees than full EVM, utilizes HTS efficiencies

Compliance & Security

Built-in compliance tools (KYC, freeze, pause)

No built-in compliance, requires smart contract logic

HTS tokens act as ERC-20/ERC-721 (via HIP-218 & HIP-376)

Flexibility

Limited customization

Highly customizable with Solidity

Combines benefits of both models

Use Cases

Enterprise solutions, regulated assets, fast transactions

DeFi, dApps, token standards (ERC-20, ERC-721, ERC-3643)

Interoperability, scalable token solutions, cost-effective DeFi


1. Hedera Token Service (HTS) - Native Tokenization

HTS provides a high-performance, native tokenization framework that operates directly on Hedera’s core consensus layer. Unlike smart contract-based tokenization, HTS offers faster transactions and reduced costs by eliminating the need for Solidity smart contracts.

Best for: Stablecoins, loyalty programs, micropayments, and enterprise solutions.


2. ERC/EVM Tokenization (EVM-Compatible Standards)

This model allows developers to deploy standard ERC-20, ERC-721, and ERC-1155 tokens using smart contracts within Hedera’s EVM implementation environment. This model is ideal for EVM-based projects migrating to Hedera or developers who prefer Solidity-based token logic.

Best for DeFi protocols, NFT marketplaces, and EVM-native projects.


3. Hybrid Tokenization – Combining HTS with EVM Smart Contracts

The hybrid model combines the speed and cost efficiency of HTS with the programmability of EVM smart contracts. Developers can perform basic token operations (minting, transfers, burning) using HTS while leveraging smart contracts for complex logic, such as governance, interoperability, and multi-signature transactions.

Best for DeFi, security tokens, and asset tokenization requiring smart contract logic.

Key Features

  • HTS handles core operations – Minting, burning, and transfers at low cost

  • Smart contracts add flexibility – Custom governance, multi-signature approvals

  • Balances cost & programmability – Reduces gas fees while maintaining EVM flexibility

  • Interoperability-ready – Works with existing EVM infrastructure


Tokenomics & Fee Structure

Hedera's tokenization framework prioritizes low costs, predictability, and flexibility, making it ideal for developers and businesses issuing and managing digital assets at scale. The fixed fee model ensures that transaction fees remain low, stable, and predictable, as they are denominated in USD and paid in HBAR. The transaction fees are not impacted by network demand and congestion like other chains. This eliminates volatility and makes transaction costs easy to estimate.

Built-In Custom Fees

The Hedera Token Service (HTS) extends beyond standard transaction fees by offering a custom fee schedule that enables automated fee distribution for token transactions, revenue sharing, and royalty payments, all without requiring smart contracts. These fees are enforced programmatically at the token level, ensuring predictability, efficiency, and scalability. By integrating fixed network fees with customizable fee structures, Hedera provides a developer-friendly, cost-effective solution for managing digital assets at scale.


Additional Resources

HTS x EVM - Part 1: How to Mint NFTs [Tutorial]
HTS x EVM - Part 2: KYC & Update [Tutorial]
HTS x EVM - Part 3: How to Pause, Freeze, Wipe, and Delete NFTs [Tutorial]
Native Tokenization Key Features
ERC/EVM-Based Tokenization Key Features
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HTS Native
ERC/EVM
Hybrid (HTS + EVM)
Hedera Token Service (HTS) Native Tokenization | Hedera
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ERC/EVM Tokenization: EVM-Compatible Standards | Hedera
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Hybrid (HTS + EVM ) Tokenization | Hedera
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Custom Fee Schedule | Hedera
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