diff --git a/docs/Asset-Model.md b/docs/Asset-Model.md
new file mode 100644
index 0000000..bedc787
--- /dev/null
+++ b/docs/Asset-Model.md
@@ -0,0 +1,25 @@
+# Typed Asset Model Architecture
+
+The PocketPay SDK uses a discriminated union for asset representations across all SDK functions (balances, payments, transaction summaries, and validation logic). 
+
+This model ensures type safety, prevents invalid asset configurations at compile time, and supports both native XLM and Stellar issued assets (AlphaNum4 & AlphaNum12).
+
+---
+
+## 1. Asset Type Hierarchy
+
+The `Asset` type is a discriminated union of `NativeAsset` and `IssuedAsset`:
+
+```typescript
+import { Asset, NativeAsset, IssuedAsset, NATIVE_ASSET } from '@axionvera/pocketpay-sdk';
+
+// Native XLM Asset
+const xlm: NativeAsset = NATIVE_ASSET;
+// { type: 'native', code: 'XLM' }
+
+// Issued Credit Asset (AlphaNum4 or AlphaNum12)
+const usdc: IssuedAsset = {
+  type: 'issued',
+  code: 'USDC',
+  issuer: 'GA5ZSEJYB37JRC5AVCIA5MOP4RHTM335WF2CCX3THRDU2C2FYM235AC2',
+};
diff --git a/src/index.ts b/src/index.ts
index 2033242..4db6a17 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -53,6 +53,11 @@ export type {
   TrustlineStatus,
   TrustlineCheckResult,
   TrustlineCheckOptions,
+  // ─── Typed Asset Model ─────────────────────────────────────────────────────
+  Asset,
+  NativeAsset,
+  IssuedAsset,
+  AssetValidationResult,
   // ─── Multi-Asset Balance Model ──────────────────────────────────────────────
   AssetBalanceState,
   AccountBalanceState,
@@ -68,7 +73,17 @@ export type {
   RetryPolicyExhaustedResult,
 } from './types';
 
-export { PocketPayError, TransactionDirection, TransactionStatus } from './types';
+export {
+  PocketPayError,
+  TransactionDirection,
+  TransactionStatus,
+  // ─── Typed Asset Model Exports ─────────────────────────────────────────────
+  NATIVE_ASSET,
+  isNativeAsset,
+  isIssuedAsset,
+  validateAsset,
+  assertValidAsset,
+} from './types';
 
 // ─── Error Enrichment Types ────────────────────────────────────────────────
 export type { ResultWarning, RecoveryHint } from './errors';
@@ -224,6 +239,9 @@ export {
   toEnhancedResult,
   // Asset helpers
   findAssetBalance,
+  formatAsset,
+  parseAssetString,
+  areAssetsEqual,
   // Security helpers
   redactSensitive,
 } from './utils';
diff --git a/src/types/asset.ts b/src/types/asset.ts
new file mode 100644
index 0000000..f66b5a3
--- /dev/null
+++ b/src/types/asset.ts
@@ -0,0 +1,84 @@
+export interface NativeAsset {
+  type: 'native';
+  code: 'XLM';
+}
+
+export interface IssuedAsset {
+  type: 'issued';
+  /** 1-12 alphanumeric characters (AlphaNum4 or AlphaNum12) */
+  code: string;
+  /** Valid 56-character Stellar G-address public key */
+  issuer: string;
+}
+
+export type Asset = NativeAsset | IssuedAsset;
+
+/** Immutable constant for native XLM */
+export const NATIVE_ASSET: Readonly<NativeAsset> = Object.freeze({
+  type: 'native',
+  code: 'XLM',
+});
+
+// ==========================================
+// Type Guards & Validation
+// ==========================================
+
+export function isNativeAsset(asset: Asset): asset is NativeAsset {
+  return asset.type === 'native';
+}
+
+export function isIssuedAsset(asset: Asset): asset is IssuedAsset {
+  return asset.type === 'issued';
+}
+
+const STELLAR_PUBKEY_REGEX = /^G[A-Z2-7]{55}$/;
+const ASSET_CODE_REGEX = /^[a-zA-Z0-9]{1,12}$/;
+
+export interface AssetValidationResult {
+  valid: boolean;
+  error?: string;
+}
+
+/**
+ * Validates native and issued assets against Stellar network rules.
+ */
+export function validateAsset(asset: Asset): AssetValidationResult {
+  if (!asset || typeof asset !== 'object') {
+    return { valid: false, error: 'Asset must be an object' };
+  }
+
+  if (asset.type === 'native') {
+    if (asset.code !== 'XLM') {
+      return { valid: false, error: 'Native asset code must be "XLM"' };
+    }
+    return { valid: true };
+  }
+
+  if (asset.type === 'issued') {
+    if (!asset.code || typeof asset.code !== 'string' || !ASSET_CODE_REGEX.test(asset.code)) {
+      return { valid: false, error: 'Issued asset code must be 1-12 alphanumeric characters' };
+    }
+
+    if (asset.code.toUpperCase() === 'XLM') {
+      return { valid: false, error: 'Issued asset code cannot be XLM' };
+    }
+
+    if (!asset.issuer || typeof asset.issuer !== 'string' || !STELLAR_PUBKEY_REGEX.test(asset.issuer)) {
+      return { valid: false, error: 'Issued asset issuer must be a valid Stellar public key (starting with G)' };
+    }
+
+    return { valid: true };
+  }
+
+  return { valid: false, error: 'Invalid asset type. Expected "native" or "issued"' };
+}
+
+/**
+ * Throws an Error if the asset fails validation.
+ */
+export function assertValidAsset(asset: Asset): void {
+  const result = validateAsset(asset);
+  if (!result.valid) {
+    throw new Error(`Invalid Asset: ${result.error}`);
+  }
+}
diff --git a/src/types/index.ts b/src/types/index.ts
index e443191..0be06e1 100644
--- a/src/types/index.ts
+++ b/src/types/index.ts
@@ -905,3 +905,4 @@ export interface RetryPolicyExhaustedResult {
   /** Number of attempts made. */
   attempts: number;
 }
+export * from './asset';
diff --git a/src/utils/assetHelpers.ts b/src/utils/assetHelpers.ts
new file mode 100644
index 0000000..20f2ff2
--- /dev/null
+++ b/src/utils/assetHelpers.ts
@@ -0,0 +1,65 @@
+import {
+  Asset,
+  NATIVE_ASSET,
+  isNativeAsset,
+  isIssuedAsset,
+  assertValidAsset,
+} from '../types/asset';
+
+/**
+ * Formats an Asset into its standard string representation.
+ * - Native: "XLM"
+ * - Issued: "CODE:ISSUER" (e.g. "USDC:GA5ZSEJYB37JRC5AVCIA5MOP4RHTM335WF2CCX3THRDU2C2FYM235AC2")
+ */
+export function formatAsset(asset: Asset): string {
+  assertValidAsset(asset);
+  if (isNativeAsset(asset)) {
+    return 'XLM';
+  }
+  return `${asset.code}:${asset.issuer}`;
+}
+
+/**
+ * Parses a string representation into a typed Asset object.
+ * Accepts:
+ * - "XLM" or "native" -> NativeAsset
+ * - "CODE:ISSUER" -> IssuedAsset
+ */
+export function parseAssetString(assetStr: string): Asset {
+  if (!assetStr || typeof assetStr !== 'string') {
+    throw new Error('Asset string must be a non-empty string');
+  }
+
+  const trimmed = assetStr.trim();
+
+  if (trimmed.toUpperCase() === 'XLM' || trimmed.toLowerCase() === 'native') {
+    return NATIVE_ASSET;
+  }
+
+  const parts = trimmed.split(':');
+  if (parts.length === 2 && parts[0] && parts[1]) {
+    const asset: Asset = {
+      type: 'issued',
+      code: parts[0].trim(),
+      issuer: parts[1].trim(),
+    };
+    assertValidAsset(asset);
+    return asset;
+  }
+
+  throw new Error(
+    `Cannot parse asset string: "${assetStr}". Expected "XLM" or "CODE:ISSUER"`
+  );
+}
+
+/**
+ * Checks strict equality between two Asset objects.
+ */
+export function areAssetsEqual(a: Asset, b: Asset): boolean {
+  if (a.type !== b.type) return false;
+  if (isNativeAsset(a) && isNativeAsset(b)) return true;
+  if (isIssuedAsset(a) && isIssuedAsset(b)) {
+    return a.code === b.code && a.issuer === b.issuer;
+  }
+  return false;
+}
diff --git a/src/utils/index.ts b/src/utils/index.ts
index 911b0eb..3a08dae 100644
--- a/src/utils/index.ts
+++ b/src/utils/index.ts
@@ -480,5 +480,5 @@ export {
   getTransactionExplorerLink,
   getOperationExplorerLink,
 } from './explorer';
-
+export * from './assetHelpers';
 
diff --git a/tests/types/asset.test.ts b/tests/types/asset.test.ts
new file mode 100644
index 0000000..33e20fe
--- /dev/null
+++ b/tests/types/asset.test.ts
@@ -0,0 +1,151 @@
+import {
+  NATIVE_ASSET,
+  isNativeAsset,
+  isIssuedAsset,
+  validateAsset,
+  assertValidAsset,
+  formatAsset,
+  parseAssetString,
+  areAssetsEqual,
+  Asset,
+  IssuedAsset,
+} from '../../src';
+
+const VALID_ISSUER = 'GBAU2A3P3VBAJ2R6IUZTL735PVD4OHRRL3AOHXWTYLOH765P6I34J4GH';
+const SECOND_ISSUER = 'GCX2233633644556677889900AABBCCDDEEFFGGHHIIJJKKLLMMNNOOPP';
+
+describe('Typed Asset Model', () => {
+  describe('Native XLM Asset', () => {
+    it('correctly identifies native XLM asset', () => {
+      expect(NATIVE_ASSET.type).toBe('native');
+      expect(NATIVE_ASSET.code).toBe('XLM');
+      expect(isNativeAsset(NATIVE_ASSET)).toBe(true);
+      expect(isIssuedAsset(NATIVE_ASSET)).toBe(false);
+    });
+
+    it('passes validation for native XLM', () => {
+      const res = validateAsset(NATIVE_ASSET);
+      expect(res.valid).toBe(true);
+      expect(res.error).toBeUndefined();
+      expect(() => assertValidAsset(NATIVE_ASSET)).not.toThrow();
+    });
+
+    it('fails validation if native asset code is not XLM', () => {
+      const badNative = { type: 'native', code: 'USD' } as unknown as Asset;
+      const res = validateAsset(badNative);
+      expect(res.valid).toBe(false);
+      expect(res.error).toContain('Native asset code must be "XLM"');
+    });
+  });
+
+  describe('Issued Asset Validation', () => {
+    it('validates AlphaNum4 issued asset', () => {
+      const usdAsset: IssuedAsset = {
+        type: 'issued',
+        code: 'USD',
+        issuer: VALID_ISSUER,
+      };
+      expect(isIssuedAsset(usdAsset)).toBe(true);
+      expect(validateAsset(usdAsset).valid).toBe(true);
+    });
+
+    it('validates AlphaNum12 issued asset', () => {
+      const longAsset: IssuedAsset = {
+        type: 'issued',
+        code: 'STELLARCODE12',
+        issuer: VALID_ISSUER,
+      };
+      expect(validateAsset(longAsset).valid).toBe(true);
+    });
+
+    it('fails validation if issued asset code is empty or > 12 characters', () => {
+      const emptyCode = { type: 'issued', code: '', issuer: VALID_ISSUER } as Asset;
+      expect(validateAsset(emptyCode).valid).toBe(false);
+
+      const tooLongCode = {
+        type: 'issued',
+        code: 'VERYLONGASSETNAME',
+        issuer: VALID_ISSUER,
+      } as Asset;
+      expect(validateAsset(tooLongCode).valid).toBe(false);
+    });
+
+    it('fails validation if issued asset code is XLM', () => {
+      const xlmIssued = { type: 'issued', code: 'XLM', issuer: VALID_ISSUER } as Asset;
+      const res = validateAsset(xlmIssued);
+      expect(res.valid).toBe(false);
+      expect(res.error).toContain('Issued asset code cannot be XLM');
+    });
+
+    it('fails validation if issuer public key is invalid', () => {
+      const badIssuer = { type: 'issued', code: 'USD', issuer: 'INVALID_G_KEY' } as Asset;
+      const res = validateAsset(badIssuer);
+      expect(res.valid).toBe(false);
+      expect(res.error).toContain('valid Stellar public key');
+    });
+
+    it('throws when assertValidAsset receives an invalid asset', () => {
+      const invalidAsset = { type: 'issued', code: '', issuer: '' } as Asset;
+      expect(() => assertValidAsset(invalidAsset)).toThrow('Invalid Asset:');
+    });
+  });
+
+  describe('Formatting and Parsing', () => {
+    it('formats native asset as XLM', () => {
+      expect(formatAsset(NATIVE_ASSET)).toBe('XLM');
+    });
+
+    it('formats issued asset as CODE:ISSUER', () => {
+      const asset: IssuedAsset = { type: 'issued', code: 'USDC', issuer: VALID_ISSUER };
+      expect(formatAsset(asset)).toBe(`USDC:${VALID_ISSUER}`);
+    });
+
+    it('parses XLM and native string representations', () => {
+      expect(parseAssetString('XLM')).toEqual(NATIVE_ASSET);
+      expect(parseAssetString('xlm')).toEqual(NATIVE_ASSET);
+      expect(parseAssetString('native')).toEqual(NATIVE_ASSET);
+    });
+
+    it('parses CODE:ISSUER string representation', () => {
+      const str = `USDC:${VALID_ISSUER}`;
+      const parsed = parseAssetString(str);
+      expect(parsed).toEqual({
+        type: 'issued',
+        code: 'USDC',
+        issuer: VALID_ISSUER,
+      });
+    });
+
+    it('throws error when parsing malformed strings', () => {
+      expect(() => parseAssetString('')).toThrow();
+      expect(() => parseAssetString('USDC')).toThrow('Cannot parse asset string');
+      expect(() => parseAssetString('USDC:INVALID_ISSUER')).toThrow();
+    });
+  });
+
+  describe('Asset Equality', () => {
+    it('returns true for two native assets', () => {
+      expect(areAssetsEqual(NATIVE_ASSET, { type: 'native', code: 'XLM' })).toBe(true);
+    });
+
+    it('returns true for matching issued assets', () => {
+      const a: IssuedAsset = { type: 'issued', code: 'USD', issuer: VALID_ISSUER };
+      const b: IssuedAsset = { type: 'issued', code: 'USD', issuer: VALID_ISSUER };
+      expect(areAssetsEqual(a, b)).toBe(true);
+    });
+
+    it('returns false when code or issuer differs', () => {
+      const a: IssuedAsset = { type: 'issued', code: 'USD', issuer: VALID_ISSUER };
+      const diffCode: IssuedAsset = { type: 'issued', code: 'EUR', issuer: VALID_ISSUER };
+      const diffIssuer: IssuedAsset = { type: 'issued', code: 'USD', issuer: SECOND_ISSUER };
+
+      expect(areAssetsEqual(a, diffCode)).toBe(false);
+      expect(areAssetsEqual(a, diffIssuer)).toBe(false);
+    });
+
+    it('returns false when comparing native vs issued asset', () => {
+      const issued: IssuedAsset = { type: 'issued', code: 'XLM', issuer: VALID_ISSUER };
+      expect(areAssetsEqual(NATIVE_ASSET, issued)).toBe(false);
+    });
+  });
+});