# Bond Tokenization When a bond is purchased, users receive a ERC-20 or ERC-1155 bond token to represent their position: #### ERC-1155 are tokenized Fixed-Term bond positions * Each position vests for a set amount of time after purchase * Same-day purchase regardless of time of purchase (based on UTC timestamp) will receive the same token #### ERC-20 are tokenized Fixed-Expiry bond positions * Fixed maturity (i.e. all purchases will vest at a specific timestamp) * Longer duration up to 9 months #### Composability Tokenized ERC-20 and ERC-1155 positions unlock a variety of use cases on secondary markets: * **Collateral**: Ability for Lending and Borrowing protocols to whitelist the tokenized bonds as collateral. For bonders, this introduces a new opportunity to access more capital and increases capital efficiency. * **Liquidity**: Ability to transform a previously illiquid asset into a liquid asset via fractionalization and secondary market composability. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.bondprotocol.finance/products/permissionless-bonds/issuers/bond-tokenization.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.