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Tokenized Securities Meaning

Tokenized securities are digital representations of regulated financial instruments such as equities, bonds, or fund shares issued on a blockchain. These tokens confer legal rights equivalent to their traditional counterparts, including ownership, dividends, or voting rights.

Tokenization streamlines issuance, settlement, and transfer while enabling fractional ownership and global accessibility. Compliance rules, such as transfer restrictions and identity checks, are embedded directly into smart contracts.

For institutions, tokenized securities represent a convergence of TradFi and blockchain infrastructure.

Their scalability depends on regulatory harmonization, trusted custodianship, and interoperability with existing financial systems.

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