Tokenisation and Luxembourg's pioneering role

Over recent years digital assets have gained considerable traction, harnessing the cryptographic security and 24/7 accessibility that were initially used by cryptocurrencies to tokenise a wide range of equities, bonds, funds, rea estate, commodities, etc. This method entails digitising physical assets or financial instruments through blockchain or distributed ledger technology (DLT), thus creating a digital representation - i.e. a token. Yet, despite being nascent, the underlying technology for tokenisation is witnessing increased adoption and interest, and many institutions in a wide variety of jurisdictions have been running proof of concepts on tokenisation. Additionally, these institutions are now rolling out full deployment because not only has the underlying technology proved itself to be scalable but the regulation and the surrounding infrastructure that is required has been largely put in place. Asset tokenisation also provides multiple benefits including increased accessibili…