The Malta Financial Services Authority (MFSA) launched a public consultation on 18 May on the potential tokenisation of financial instruments and real-world assets, which would represent a significant step forward in integrating distributed ledger technology (DLT) within Malta’s financial services framework.
Tokenisation refers to the digital representation of ownership rights in financial instruments or real-world assets, which can enable activities such as trading, settlements and record-keeping of investments to take place through digital platforms.
It can also improve transparency and auditability through the maintenance of a shared, time-stamped transaction records that are accessible to authorised participants within a controlled network environment, subject to appropriate governance and data protection.