A corporate invoice worth millions of dollars just sitting in a safe is like a fully charged battery that isn't connected—full of energy but unusable. In reality, these receivables often take 30 to 90 days to realize, causing small and medium-sized enterprises to face liquidity challenges. However, by 2025, on-chain technology has gradually transformed this situation. Through invoice tokenization protocols, these paper assets can directly connect to the global liquidity markets, fundamentally achieving asset digitization and value release.

**Level 1: Off-Chain Authenticity Verification**

Tokenization doesn't start with smart contracts but with legal and audit processes. Each invoice entering the system must undergo strict commercial authenticity verification. This step is to establish a trust foundation for the assets. Typically, compliant third-party oracles or legal service providers are employed to verify the trade contracts, logistics records, and the debtor’s repayment ability behind the invoice. Only then can the on-chain records correspond to real, existing commercial claims, rather than fictitious certificates.

**Level 2: Legal Framework Construction**

To enable off-chain assets to exist on-chain, legal design is necessary. This usually involves establishing a Special Purpose Vehicle (SPV) as the legal owner of the on-chain assets. The existence of the SPV ensures the correspondence between off-chain ownership and on-chain tokens, serving as a critical infrastructure for the compliant operation of RWA (Real World Assets). Under current regulatory frameworks, this step is indispensable.

**Level 3: On-Chain Liquidity Activation**

After completing the first two steps, the tokenized invoices can circulate in trading markets. Enterprises can realize accounts receivable early, and investors gain a new type of income asset. This process completely breaks the time gap in traditional finance, revitalizing dormant enterprise assets.