Gibraltar is weighing a new piece of legislation aimed at letting some companies issue tokenized fund shares with full legal standing.
According to Cointelegraph, the proposal would allow regulated funds to issue blockchain-based shares that get recognized under law. The same Cointelegraph report says the framework would also include investor protections.
The practical pitch in the source is straightforward. Tokenized shares would not sit in a regulatory gray area. They would come with “full legal recognition,” and the bill would attach investor protection requirements for the relevant regulated funds.
Cointelegraph frames the change as a move to expand what regulated funds can do, without stripping investors of protections. However, the details on scope, timelines, and which companies would qualify are not included in the provided text, so the extent of adoption remains unclear.
If the bill advances, it could become another test case for how jurisdictions formalize tokenized securities, not just as technology, but as enforceable legal instruments with duties attached.