Permissioned Tokens

Definition ∞ Permissioned Tokens are digital tokens issued on a blockchain where access, transfer, or ownership is restricted to pre-approved participants. Unlike public cryptocurrencies, these tokens require authorization for certain operations, often to comply with regulatory requirements such as KYC/AML. They are commonly used in enterprise blockchain solutions and regulated digital asset environments.
Context ∞ Permissioned tokens are frequently discussed in the context of institutional adoption of DLT, particularly in financial services. News reports often highlight their use in private blockchains or consortium networks where control and compliance are paramount. The debate surrounding them centers on balancing the benefits of blockchain technology with the need for regulatory oversight and controlled access.