Equity Wrapper

Definition ∞ An equity wrapper is a financial structure that tokenizes traditional equity assets, allowing them to be represented and traded on a blockchain. This involves creating a digital token that legally represents ownership or a claim on underlying shares of a company. The wrapper facilitates the fractionalization, global transfer, and programmable functionality of traditional securities within a digital asset ecosystem.
Context ∞ The development of equity wrappers is a significant area where traditional finance intersects with blockchain technology, aiming to enhance market accessibility and operational efficiency. Regulatory clarity regarding the legal enforceability and compliance requirements for these tokenized securities remains a central topic. Discussions often involve the potential for increased liquidity and broader investor participation in private and public markets.