According to David Sag's standard, each ERC-884 token represents a specific share in a Delaware corporation. The standard is intended for equity transactions, and the token's owner must be whitelisted, which is a smart contract feature. To comply with securities legislation, ERC-884 issuers must create an off-chain private database.
The new legislation allow companies in the US state of Delaware to use blockchain technology to administer share registrations. ERC-884 intends to utilise it in a scenario in which each token is labelled as a share of a corporation founded in the state of Delaware.

ERC-884 is an Ethereum token standard designed to represent shares in real estate investment trusts (REITs) and other equity assets on the blockchain. Unlike typical ERC-20 tokens, ERC-884 incorporates compliance features to meet U.S. securities regulations, particularly Delaware’s corporate laws. Each token corresponds to a share of stock, ensuring legal ownership rights while enabling blockchain-based transfers. The standard includes mechanisms for whitelisting verified investors, restricting unauthorised transfers, and maintaining a shareholder registry to comply with KYC/AML requirements. By combining the efficiency of blockchain with regulatory adherence, ERC-884 bridges traditional finance and decentralised systems, allowing for fractionalized, liquid, and transparent equity trading. However, its adoption remains niche due to legal complexities and the dominance of more flexible token standards like ERC-1400 for security tokens.