01-31, 14:15–14:35 (Europe/Zurich), Beacon Stage
Tokenized assets are expected to transform global finance, yet their legal treatment remains a source of uncertainty. This article presents an analytical framework for categorising legal structures of tokenized assets, addressing a gap in academic literature and regulatory approaches. We introduce a taxonomy based on the legal relationship between tokens and their underlying assets: Complete tokenization, where tokens embody legally enforceable rights, comprises direct tokenization, where tokens are the primary form of the asset, and indirect tokenization, where asset-backed tokens are created through intermediary structures. In contrast, incomplete tokenization results in tokens that function as "digital twins" with limited or no legal value.
Our analysis reveals that the effectiveness of tokenization depends on the robustness of this legal bond. We compare how these categories impact tokenization features, including asset transferability, legal certainty, and composability. Furthermore, we identify limiting factors in current regulatory frameworks, such as form requirements, ownership models, and identity mechanisms. Drawing examples from various legal systems and asset classes, including financial instruments, property rights, and digital assets, this work provides a foundation for evaluating tokenization strategies, with practical insights for regulators and market participants.
This presentation will primarely explain the varous legal structures used for tokenized assets. Additionally, we will touch upon related topics such as standarts and regulations.
Xavier Lavayssière is a recognized expert in digital finance with over a decade of experience. He advises governments and central banks on the policy and technological aspects of payment and financial market infrastructures.
Mr. Lavayssière lectures at Université Paris Panthéon-Sorbonne and is a research fellow at University College London's Centre for Blockchain Technologies. He has authored numerous publications on tokenization of financial instruments, smart contracts, and regulatory frameworks for digital assets. Combining backgrounds in Public Law and Computer Science, he brings a unique interdisciplinary perspective to these domains.
A serial entrepreneur and technology enthusiast, Xavier has founded several initiatives bridging technology and finance. He co-created “The Block”, a coworking in Lisbon, the League of Ledgers podcast, on international payments, XVLV, a consulting firm, and "Les Bricodeurs," a non-profit dedicated to promoting technological literacy and empowerment.
Selected Publications:
Xavier Lavayssière and Nicolas Zhang. "Programmability in Payment and Settlement", IMF Working Papers (2024), https://doi.org/10.5089/9798400286452.001
Xavier Lavayssière. “Central Bank Digital Currencies: the Quest for Public Digital Payment Infrastructures”, Blockchain at Polytechnique - Outlook (2022), http://dx.doi.org/10.2139/ssrn.4649480
Lavayssière, Xavier (2024) Research Note on the Heterogeneity of the Tokenization of Financial Assets," 2024 6th Conference on Blockchain Research & Applications for Innovative Networks and Services (BRAINS), Berlin, Germany, DOI: https://doi.org/10.1109/BRAINS63024.2024.10732456