Corporate Bond Tokenization

Definition ∞ Corporate bond tokenization converts traditional corporate debt instruments into digital tokens on a blockchain. This process fractionalizes ownership and digitizes the rights and obligations associated with a bond, making it tradable on distributed ledger technology platforms. It aims to streamline issuance, increase liquidity, and broaden investor access to corporate debt markets.
Context ∞ The tokenization of corporate bonds is a significant development in digital finance, often reported in news concerning the modernization of capital markets and the integration of blockchain with traditional financial assets. Regulatory bodies and financial institutions are actively exploring frameworks to support this innovation, which promises greater transparency and operational efficiencies. Future news will likely track pilot programs and the gradual adoption of these digital debt instruments within established financial systems.