A hardware unit for parsing an XML document includes embedded logic or circuitry for accessing the document, decoding it to change a character set, validating individual characters of the document, extracting tokens, maintaining a symbol table and generating binary token headers to describe the document's structure and convey the document's data to an application. Tokenization, the process of identifying tokens and generating token headers, may be controlled by a finite state machine that recognizes XML delimiters in the document's markup and activates state transitions based on the current state and the recognized delimiter. The parser unit may be implemented within a hardware XML accelerator that includes a processor, a DMA engine, a cryptographic engine, memory (e.g., for storing a document, maintaining a symbol table) and various interfaces (e.g., network, memory, bus).