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Digital Securities Issuance

Definition

Digital securities issuance involves creating and distributing financial securities using blockchain technology. This process tokenizes traditional assets like stocks, bonds, or real estate, representing ownership or rights as digital tokens on a distributed ledger. These digital securities are subject to existing securities laws and regulations, requiring compliance with offering rules, investor accreditation, and transfer restrictions. The use of blockchain can streamline issuance, transfer, and record-keeping, potentially increasing market liquidity and reducing operational costs.