Real World Asset Tokenization - Is a License Needed?
We're seeing a spike in the various assets being tokenized. But which assets would you need a license for and why?
This article aims to offer clarity to Real World Asset (RWA) Tokenization issuers and investors. Given that the majority of RWAs are classified as securities, navigating the intricate web of rules and regulations becomes imperative. The regulatory landscape varies based on the asset type, permissible investors, geographical location, and other factors.
Drawing upon the wealth of expertise within our legal team, considered among the most seasoned in the industry, particularly for spearheading advancements in the RWA sector in Asia, and bolstered by our expansive network and possession of all requisite licenses to facilitate RWA issuance for global investors, IX Swap and InvestaX's platforms stand as an unparalleled one-stop-shop for all RWA tokenization needs.
Jenny Johnson, the CEO of Franklin Templeton, the USD 1.5T global investment firm, says “Bitcoin is the greatest distraction from the biggest opportunity in finance, tokenized assets”.
Real World Asset Tokenization is now experiencing explosive growth despite the fact it has been in development for the past five years and has been “rebranded” several times along the way.
In this thought piece, we break down the short history of the industry and also the necessary licensing requirements required for different types of products and activities related to issuing or investing in RWA products and platforms.
There is still much confusion in the industry due to the existence of many different types of projects, with some operating in violation of regulations. So, it is important to understand what you are doing, what is or isn’t legal, and how to best navigate through the challenges of understanding what is going on, so that you can still capture the value in all these new opportunities.
“RWA” or “STO”, whichever term you choose to use doesn’t matter. What is important is that there is now a seismic shift aiming to catapult tangible assets into the digital realm through the power of blockchain. In a world of digital currencies and other digital assets (like NFT Art), it makes sense to have a world of digital securities or RWA tokens.
Read the full blog on our website and understand whether or not you need a license for RWAs: