Publication of ADAN’s Memorandum on Tokenization

Tokenization is a revolution in the making, yet it remains largely unknown or misunderstood. That is why ADAN is releasing a memorandum today dedicated to tokenization, the result of a collaborative effort led by its Tokenization Committee under the direction of Cassandre Vassilopoulos and Inés Beneyto. This document provides a comprehensive overview, highlights the concrete benefits for issuers, investors, and the financial infrastructure, and identifies the obstacles that must be overcome for successful adoption.

In addition, it provides a common framework for understanding the concept by defining tokenization and identifying its implications for the economy, regulation, and market infrastructure.

Objectives of the project

This memorandum aims to organize the discussion on tokenization by:

• Providing a comprehensive overview of its uses and the types of assets involved.
• Clarifying the distinction between tokenization and other mechanisms such as securitization or asset fragmentation.
• Identifying the technical and regulatory challenges to guide and shape its development.
• Identifying the economic benefits, particularly in terms of cost reduction, infrastructure modernization, and liquidity optimization.

The document notes that tokenization is not limited to digitizing assets or recording them on a blockchain. It involves a structural transformation of assets that endows them with new properties, particularly in terms of tradability and transparency.

Key Issues and Challenges

While tokenization paves the way for greater market efficiency and broader access to financing, its development depends on several conditions.

First, adapting the legal and regulatory framework is essential to ensure clear recognition of tokenized assets and to establish a clear framework for their ownership. Clarifying the applicable regulations and compliance requirements will boost confidence among market participants. Second, the development of appropriate infrastructure must enable efficient and secure settlement and delivery, particularly through on-chain settlement assets, which are essential for the smooth flow of transactions.

Furthermore, interoperability with existing financial infrastructures is a key challenge. Tokenization can only be fully implemented if new DLT platforms can integrate with traditional systems, thereby ensuring a smooth transition.

Finally, the involvement of institutional players will be crucial to building deep and liquid markets. The commitment of issuers, investors, and market infrastructures will accelerate adoption and foster convergence between technological innovation and financial stability.

The year 2025 marks a decisive turning point: the shift from isolated experiments to concrete, large-scale applications will shape the future of tokenized finance for years to come. As a pioneer in this field, France must build on its achievements to strengthen its leadership and establish a competitive ecosystem at the European level.

Acknowledgments

This memorandum is the result of a collaborative effort by the ADAN Tokenization Committee. We would like to extend special thanks to Mark Kepeneghian, Chair of the Tokenization Committee, as well as Cassandre Vassilopoulos and Ines Beneyto for leading this work.

ADAN would also like to thank the members of the working group for their contributions: Alexis Bourdillat, Geneviève Douhet, Que Phuong Dufournet, Myriam Dana-Thomae, Charles Lorand, Victor Busson, Alain Rocher, Alexander Tollast, and Thomas Vailli.