GLOSSARY · BLOCKCHAIN & WEB3
Tokenized transferable security
A tokenized transferable security is a security (share, bond) represented on a blockchain and regulated as a financial instrument.
WHAT IS IT? · FOR DUMMIES
A tokenized transferable security is an ordinary share or bond, but held and moved on a blockchain instead of in a traditional register. The thing you hold (a stake, a debt) is exactly the same; what changes is the format in which it is recorded and transferred. That is why it still plays by the serious rules of the stock market.
WHAT IS IT? · PRO
A tokenized transferable security is a transferable security, a financial instrument within the meaning of MiFID II Directive 2014/65/EU, represented through distributed ledger technology (DLT) rather than through traditional book entries.
Tokenization affects the form of representation, not the legal nature of the asset: since it remains a financial instrument, it is governed by MiFID II, MiFIR (Regulation (EU) 600/2014) and, in Spain, by Law 6/2023 (BOE-A-2023-7053), and is excluded from the scope of MiCA (Art. 2(4)).
01 / Key points
- A security (share, bond) represented through DLT.
- Tokenization changes the format, not the nature of the asset.
- It is a financial instrument: governed by MiFID II, MiFIR and the LMVSI.
- Falls outside MiCA by application of Art. 2(4).