Definition
A tokenized security is a financial security (equity, debt, or hybrid instrument) represented on a blockchain as a token that carries the rights and obligations of the underlying security. Tokenized securities are subject to the same securities laws as their traditional counterparts, which in the US means registration, disclosure, and trading-venue requirements under the Securities Act, the Exchange Act, and related SEC rules. The institutional infrastructure around tokenized securities is the combination of compliant issuance platforms, Reg-ATS-registered trading venues, and custody integration that makes the instruments tradable under the regulatory framework.
Example
A private credit fund issues tokenized equity interests under Regulation D, with the tokens trading on a Reg-ATS-registered venue to qualified investors. The tokens confer the same economic rights as traditional private equity interests, with on-chain transfer replacing paper stock certificates.
How Liquid Mercury Handles This
Mercury RWA provides the secondary-market technology infrastructure for tokenized securities, integrating with regulated custodians, compliance surfaces, and the SEC-registered ATS framework.