ERC-721 vs ERC-3525: Token Standards for Unique Asset Ownership
MVL explores two token standards for unique asset tokenization in their latest guide.
**ERC-721 (NFTs)** creates indivisible tokens with unique IDs, rich metadata, and transparent ownership records. Each token represents one complete asset - like MVL's Musubi platform using ERC-721 for vehicle tokenization, where each car becomes a unique NFT with VIN, model, and leasing data.
**ERC-3525 (Semi-Fungible Tokens)** combines NFT uniqueness with ERC-20 divisibility through a three-layer structure:
- **Slot**: Groups tokens by asset type
- **Token ID**: Unique identifier within each slot
- **Value**: Divisible numeric balance
This enables fractional ownership - a $1M robotaxi can be split into 1,000 tradeable units, then merged back for easier management.
**Key differences:**
- ERC-721: One token = one complete asset
- ERC-3525: Multiple investors can own fractions of one asset
Both standards support different tokenization needs - ERC-721 for complete ownership of unique assets, ERC-3525 for fractional investment in expensive real-world assets.
Together, these standards are creating more accessible and liquid markets for tokenized ownership.