Understanding the tokenisation of assets in financial markets
Asset tokenisation can generally be described as the digital representation of physical
assets on distributed ledgers (also referred to as digital twins) or the issuance
of native tokens on the blockchain. Although initially associated with mostly non-compliant
initial coin offerings over the period 2017-18, currently tokenisation represents
one of the most prominent cases of distributed ledger technologies in financial markets.
This Going Digital Toolkit note identifies the different approaches that policy makers
have adopted around tokenised assets and the markets for such instruments, and provides
examples of these approaches. These approaches are not mutually exclusive and policy
makers may differ in the way they address asset tokenisation, participants of tokenised
markets, and risks arising in these markets. This Toolkit note does not classify approaches
into categories, but rather describes elements and characteristics of different jurisdictional
approaches to asset tokenisation, some of which can co-exist.
Published on November 03, 2021
In series:OECD Going Digital Toolkit Notesview more titles