Tokenization refers to the process of converting rights to an asset into a digital token on a blockchain. In Luxembourg's financial market, this can encompass a wide range of assets, from real estate and commodities to shares in companies. The primary legal framework governing these activities includes the Law of 1 March 2019, known as the Blockchain Law II, which introduced a secure mechanism for the transfer of securities using blockchain technology, and the general regulatory landscape as overseen by the Commission de Surveillance du Secteur Financier (CSSF).
