A tokenized asset is a digital representation of ownership, entitlement, or claim to an underlying asset issued and recorded on a blockchain. Depending on its legal and technical structure, a token can embody direct ownership, a fractional interest, or a contractual right to the underlying asset or its economic value. Tokenization enables the programmable transfer, settlement, and verification of these rights in a transparent and efficient manner, reducing operational frictions and enhancing market accessibility.

Tokenized assets integrate financial, legal, operational, and technological dimensions that distinguish them from traditional securities. The process of tokenization fundamentally alters core product features - how assets are issued, held, and transferred - by embedding contractual terms and transactional logic directly into code. As a result, the risk profile of a tokenized asset depends not only on the credit quality of its underlying exposure but also on the structural integrity of the token design, the resilience and security of the supporting technical infrastructure, and the enforceability of the governing legal and regulatory frameworks.

Particula’s assessments apply a multidimensional approach that captures the full risk structure of tokenized assets across counterparties, structural design, and underlying exposures. While traditional credit ratings primarily focus on issuer or portfolio credit quality, Particula evaluates additional dimensions such as smart contract integrity, blockchain ecosystem resilience, and the operational reliability of supporting infrastructure. Assessments are rules-based, data-driven, and continuously monitored using on- and off-chain indicators, providing transparent and comparable risk insights tailored to the digital asset market.

Particula assesses all forms of asset-backed tokens, whether natively issued on-chain or created through the tokenization of existing financial or real-world assets. Eligible asset classes comprise financial instruments, commodities, real assets, pegged payment tokens (fiat- or asset-backed), and structured or wrapped tokens (such as tranches or vault tokens). The Particula Digital Asset Risk Framework (PDARF) explicitly excludes speculative, algorithmic, or utility tokens without verifiable asset backing or defined economic structure. Classification and eligibility are governed by the Particula Digital Asset Classification System (PDACS), which provides a standardized taxonomy for evaluating the economic, legal, and technical characteristics of each token type.

Particula’s methodology evaluates asset-backed tokens across multiple dimensions using a standardized, rules-based, and data-driven scoring framework. Each token is assessed through predefined, observable criteria covering counterparty, structural, and underlying asset risks. Scores are derived quantitatively and reviewed by analysts for consistency, resulting in an ordinal rating on a scale from AAA (Highest Quality, Minimal Risk Exposure) to D (Full Risk Exposure). The outcome reflects each token’s relative risk profile based on verifiable data at the time of assessment and determines its capacity to fulfill contractual obligations in full, on time, and in accordance with its defined structure. Additionally numeric modifiers (+/-) deliver a more granular and precise classification.

Scores are derived exclusively from verifiable data collected from publicly available disclosures. Where available, verified issuer documentation is incorporated to ensure completeness and comparability across assessments. All incoming data undergoes validation, cross-verification, and plausibility testing prior to inclusion, ensuring that only accurate and verified inputs inform each assessment. Scores are updated automatically to reflect the latest information and market developments. The frequency of updates depends on the nature of the data: on-chain information is refreshed in near real time, while off-chain and issuer-provided data trigger event-based updates. All scores are continuously monitored and undergo a formal review at least quarterly. Material changes in structure, governance, or underlying assets may prompt an interim update or risk rating adjustment. To support ongoing surveillance, the Particula Digital Asset Risk Framework (PDARF) also employs Trend Detectors and Red Flags. Trend Detectors identify sustained directional changes in key risk indicators over defined observation periods, signaling gradual shifts in a token’s risk profile. Red Flags highlight discrete, high-impact events that exceed predefined risk thresholds, serving as early warning signals for potential reassessment.

The Particula Digital Asset Risk Framework (PDARF) is reviewed at least quarterly to ensure ongoing alignment with market developments, regulatory standards, and technological innovation in tokenization and blockchain infrastructure. Updates are implemented as necessary to reflect changes in industry practices, legal frameworks, or analytical requirements, following internal governance procedures and approval protocols established under the framework.

Particula maintains the independence and integrity of its analytical process in accordance with its Code of Conduct, publicly available on the company’s website. All assessments are conducted using a uniform, rules-based methodology that relies solely on objective, verifiable data and the procedures defined in the Particula Digital Asset Risk Framework (PDARF). Analytical teams operate independently from commercial and business development functions, ensuring that rating outcomes are free from external or commercial influence. Each assessment is subject to internal peer review and quality control to confirm methodological consistency and impartial judgment. In line with the Code of Conduct, Risk Ratings are not pre-negotiated, previewed, or influenced by issuers or other stakeholders. Particula does not provide rating advisory services, act as a broker or dealer, or maintain financial interests in rated assets or issuers, thereby upholding complete analytical independence and professional integrity throughout the rating process.

Particula operates as an analytics and risk assessment provider and is not classified as a credit rating agency within the meaning of the EU Credit Rating Agency Regulation (CRA Regulation). It is therefore not subject to registration or supervision by ESMA, the U.S. SEC, or equivalent authorities. In accordance with legal opinion, the Risk Rating Scores generated under the Particula Digital Asset Risk Framework (PDARF) qualify as credit scores pursuant to Article 3(1)(y) of the CRA Regulation and are exempt from its scope under Article 2(2)(b). These scores are derived solely from pre-established, data-driven models without analyst judgment, forward-looking assumptions, or qualitative opinions. For security tokens that qualify as financial instruments under Article 4(1)(15) MiFID II, the related analyses may constitute investment recommendations within the meaning of Article 3(1)(35) MAR and § 86 of the German Securities Trading Act (WpHG). Such publications are prepared in accordance with the transparency, documentation, and conflict-of-interest disclosure requirements set out under Delegated Regulation (EU) 2016/958 and do not constitute individualized investment advice or portfolio management within the meaning of MiFID II. All activities adhere to international best-practice principles of transparency, data integrity, and analytical independence. Consistent with ESMA guidelines, all publications clearly disclose that Risk Rating Scores do not constitute credit ratings under the CRA Regulation.