A tokenized Treasury can move across a blockchain in seconds. A tokenized stock can trade around the clock. But none of that answers the question that matters most when something goes wrong:
What do you legally own if the company behind the token goes bankrupt?
The answer depends less on the blockchain than on the legal structure behind the token.
The SEC now explicitly distinguishes between issuer-sponsored tokenized securities and tokens created by independent third parties. In an issuer-sponsored model, the blockchain record may form part of the issuer’s official ownership system. With third-party tokenization, however, the token may represent only a contractual claim, and holders can face bankruptcy risk tied to the intermediary…