Definition ∞ Regulated dollar tokens are stablecoins pegged to the US dollar that are issued and operated under specific governmental or financial authority oversight. These digital assets adhere to stringent regulatory requirements, including robust reserve management, regular audits, and compliance with anti-money laundering (AML) and know-your-customer (KYC) laws. Their regulatory status aims to provide greater stability, transparency, and consumer protection compared to unregulated stablecoins. They seek to bridge traditional finance with digital asset innovation.
Context ∞ News often discusses the emergence and increasing adoption of regulated dollar tokens as a key development for mainstream acceptance of digital assets. Reports detail legislative efforts and regulatory frameworks being established to govern these tokens, particularly in major financial jurisdictions. The competition between regulated dollar tokens and potential central bank digital currencies (CBDCs) is a frequent topic, highlighting their role in the evolving digital economy.