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What Is a ‘Permissioned Token,’ and Why Is It Necessary for the Tokenization of Regulated Securities?

A permissioned token enforces on-chain transfer restrictions (KYC/AML) to ensure compliance with securities regulations.
Greeks.Live16.11.25

What Is a ‘Permissioned Token,’ and Why Is It Necessary for the Tokenization of Regulated Securities?

A permissioned token is a standard (like ERC-3643) that enforces transfer restrictions based on a set of on-chain rules. It is necessary for regulated securities because it allows the issuer to comply with legal requirements like KYC/AML, accredited investor status, and jurisdictional restrictions.

Only pre-approved, whitelisted addresses can hold or trade the token, ensuring compliance with securities law.

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