How Does the Legal Concept of Ownership Transfer Apply to a Tokenized Asset?

The legal transfer of ownership for a tokenized asset depends on the jurisdiction and the asset type. For regulated assets (security tokens), the transfer of the token on the blockchain must be legally recognized as the transfer of the underlying asset's title.

This requires legal frameworks to acknowledge the token's private key control as proof of ownership. For some jurisdictions, this is achieved through legal 'wrappers' or specific regulatory sandboxes.