What Is the Role of a Legal Custodian in a Tokenized RWA Offering? ▴ Learn

What Is the Role of a Legal Custodian in a Tokenized RWA Offering?

The role of a legal custodian in a tokenized Real-World Asset (RWA) offering is to legally hold and safeguard the physical or traditional financial asset that the security token represents. Since the token itself is merely a digital representation of ownership, a trusted, regulated legal custodian ensures that the underlying asset exists, is properly valued, and is legally ring-fenced for the token holders.

This is a crucial centralized component that provides the necessary legal link and investor protection required by securities laws.

How Does the Concept of a “Tokenized Asset” Relate to Financial Derivatives?

What Is the Role of a Custodian in the Tokenization of a Physical Asset?

How Does the ‘Proof of Reserves’ Mechanism Relate to Custodian Transparency?

How Does the Legal Enforceability of a Tokenized Derivative Compare to a Traditional Contract?