Definition ∞ Off-chain legal wrappers are legal agreements or structures that provide a traditional legal framework for assets or rights represented by tokens on a blockchain, but whose enforceability exists outside the blockchain itself. These wrappers link the digital token to real-world assets or contractual obligations, providing legal recourse that the blockchain alone cannot offer. They bridge the gap between digital ownership and conventional legal systems. This approach addresses regulatory uncertainties.
Context ∞ News regarding off-chain legal wrappers frequently appears in discussions about the tokenization of real-world assets, such as real estate or commodities. These wrappers are critical for providing legal certainty and investor protection, particularly in jurisdictions where digital assets lack clear regulatory definitions. The development and acceptance of robust off-chain legal wrappers are essential for expanding the institutional adoption of tokenized assets and bridging traditional finance with blockchain technology.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
