Jersey for the Tokenisation of Real-World Assets
Tokenisation is on course to revolutionise traditional finance and investment landscapes. As real-world asset strategies (RWA) scale, jurisdictional choice has become a critical element especially where regulatory certainty, structuring flexibility, and cross-border distribution are required.
This is where Jersey differentiates itself.
Jersey has an established digital ecosystem, with a world-class level of expertise and network infrastructure. The jurisdiction has the second fastest broadband speed in the world (Worldwide Broadband Speed League).
Jersey has a forward-thinking regulatory approach to the approval of virtual asset funds, virtual asset exchanges and token-generating events. The jurisdiction treats virtual assets the same as any other asset class.
Jersey regulated the world’s first bitcoin fund in 2014. More recently, Jersey’s first stablecoin, DBUSD from Deep Blue, was authorised following the publication of asset tokenisation guidance from Jersey’s regulator in 2024.
Jersey’s robust regulatory framework, and political and economic stability, has helped keep it at the forefront of global finance for more than 60 years.
Jersey regulatory guidance on the Tokenisation of Real-World Assets (RWA) provides clear parameters, streamlining the application process and bringing increased regulatory clarity and execution certainty for applicants.
Jersey has a broad range of investment structures catering for virtual asset and fintech businesses. Jersey treats tokenisation in the same way as securitisation vehicles and has long history of expertise in collateralised loan obligation (CLO) securitisation structures.
A securitisation vehicle approach to tokenisation: The advantages
Jersey has positioned tokenisation of RWA within its established securitisation framework. The jurisdiction has deep expertise in this area.
This approach means that Jersey’s regulator grants its consent in relation to the issue of tokens, to confirm that a structure complies with regulation – a proactive consent, which can give issuers and investors some much needed certainty.
Under Jersey law, a securitisation vehicle is not treated as an investment fund. CDD is only required on the issuance and redemption of a token, lightening the need for CDD on every token holder.
Jersey law does not impose limitations on the number of note holders for a securitisation vehicle.
Jersey’s securitisation vehicles are out of scope of the Alternative Investment Fund Managers Directive (AIFMD), making access to Europe cheaper, faster and more efficient
Tokens can be issued directly to retail investors in Jersey provided risks are adequately disclosed, but are typically issued to professional investors or institutions for retail distribution.
Jersey offers a tax neutral environment with no withholding tax, supporting efficient capital flows and investor returns.
