Legal Wrappers

Definition ∞ Legal wrappers are formal legal agreements or structures designed to connect digital assets or blockchain-based rights with traditional legal ownership and obligations. They serve as a bridge between the innovative, often code-based world of decentralized systems and established legal jurisdictions. These structures provide a framework for enforcing real-world rights and responsibilities. They aim to grant legal certainty to digital property.
Context ∞ The application of legal wrappers is particularly relevant in the tokenization of real-world assets and the governance of decentralized autonomous organizations. They help clarify legal ownership and liability in situations where purely on-chain rules might not be recognized by conventional law. News often highlights the ongoing efforts to develop robust legal frameworks that accommodate the unique characteristics of digital assets. This approach seeks to reduce regulatory uncertainty and foster wider adoption.