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Regulated Tokenization

Definition

Regulated tokenization is the process of converting real-world assets into digital tokens under legal and financial oversight. This involves issuing digital representations of assets like real estate, equities, or commodities on a blockchain, ensuring compliance with securities laws, anti-money laundering (AML) directives, and investor protection rules. It aims to combine the efficiency and transparency of blockchain technology with the legal certainty and investor safeguards of traditional financial markets. Such tokenization facilitates fractional ownership, increases liquidity, and broadens access to various asset classes.