> For the complete documentation index, see [llms.txt](https://docs.bondprotocol.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bondprotocol.finance/products/permissionless-bonds/issuers/bond-tokenization.md).

# 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.