Tokenised Custody

Definition ∞ Tokenised custody refers to the process of holding and managing digital assets where ownership is represented by a token on a blockchain. This system allows for fractional ownership, enhanced liquidity, and streamlined transfer of traditional assets. It combines the security of traditional custody with the programmability and transparency of blockchain technology. This method offers novel approaches to asset management.
Context ∞ The current discussion around tokenised custody often centers on its application for real-world assets, such as real estate or fine art, making them more accessible and divisible. Debates persist regarding the legal frameworks required to fully recognize and protect tokenized ownership rights across jurisdictions. A critical future development involves the widespread adoption of interoperable tokenised custody solutions, simplifying cross-chain asset management.