A yield-tokenization asset that represents the right to redeem principal at maturity under a protocol's terms.
Buying a PT at a discount and redeeming at par produces gain at maturity, similar in economics to a zero-coupon bond, though crypto is property rather than a debt instrument. The common position treats the discount as capital gain on redemption; a minority view analogizes to original issue discount.
Unsettled. The common position is capital gain on redemption because the token is property; some practitioners analogize to original issue discount and accrue it. We document the position.
Source: No IRS guidance as of September 2026; IRS Notice 2014-21 (property treatment)
Last reviewed September 18, 2026. Tax rules change; confirm current law before acting.
A confidential consultation. Tell us what you have, and we will tell you what applies and what it costs.
Hourly billing, estimated up front, with a deposit applied to the work.
Fill this out and we will reach out to schedule your consultation.
