Tokenization in the European Union transforms traditional assets and rights into digital tokens on blockchains governed by rapidly changing regulations. This guide unpacks what tokenization involves, its significance for EU enterprises and investors, the regulatory framework, current applications, and how to adopt tokenization effectively and legally.
- ARTs: Link multiple asset types, demanding strict management and transparency.
- EMTs: Tied to one fiat currency, issued by licensed institutions, ensuring redemption.
- Utility Tokens: Provide service access, with rules if publicly offered.
Tokenization within the EU, underpinned by MiCA and other regulatory frameworks, presents a structured path for businesses to innovate. Careful planning and alignment with legal standards can foster efficiency and novel financial possibilities while ensuring robust compliance and risk management.
