Asset Tokenization in Financial Markets 2025

Contents11 PERMISSIONCONTROLS PROVENANCEASSETDEFINITIONEM BEDDEDRIGHTS T O K E NOWNERSHIPSTATUS COM PLIANCERULESClearly identifies the underlying asset, specifying its category (e.g. bond, equity), issuer details, unique identifiers, available quantity and characteristics essential for valuation, accounting and trading.ASSET DEFINITION Details legal and economic entitlements granted to the token holder, such as dividend payouts, voting participation, redemption capabilities or interest payments.EMBEDDED RIGHTS Provides a transparent, tamper-proof and auditable record of the token’s origin, transaction history and previous ownership – all of which can be designated to authorized viewers or publicly viewable.PROVENANCE (HISTORY)Accurately represents current holders or custodians of the token, including explicit claims or encumbrances over the underlying asset.OWNERSHIP STATUS Encodes compliance requirements, regulatory conditions and jurisdiction- specific rules directly into the token, enforcing rules governing transferability, trading eligibility and legal adherence.COMPLIANCE RULES Implements permissions within smart contracts that specify and control user actions, allowing designated users or restricting actions (e.g. transfers, freezing) based on predefined rules.PERMISSION CONTROLSFIGURE 3 Token attributesFoundational key concepts 1.4 Token attributes Six attributes – asset definition, embedded rights, provenance (history), ownership status, compliance rules and permission controls – make financial asset tokens more transparent, secure and efficient. By embedding key asset information into tokens, financial markets could operate with reduced complexity, stronger investor protections and greater trust.