Issuer Authorization

Definition ∞ Issuer authorization refers to the formal permission granted by the entity responsible for creating or distributing an asset, service, or credential. This authorization confirms the issuer’s approval for a specific action or transaction. It is a key mechanism for validating legitimacy and control. This process establishes official consent.
Context ∞ In the digital asset space, issuer authorization is vital for stablecoins, security tokens, and central bank digital currencies, where a specific entity controls issuance and redemption. Regulatory discussions frequently address the scope and enforcement of issuer authorization to protect consumers and maintain financial stability. The ongoing challenge involves establishing clear legal and technical frameworks for authorized digital asset operations.