Debunking Tokenization Myths: Legal & Technical Realities from the STO Summit 2025
At STO Summit Spring 2025, Brickken’s General Counsel Elisenda Fàbrega and CTO Felipe Donofrio delivered a powerful “Fusion Talk” that brought together the two sides of tokenization that matter most: compliance and code.
In a world where real-world asset (RWA) tokenization is gaining global momentum, the session addressed a key need: clarity. Specifically, what is legally enforceable under EU law—and what’s not? How do smart contracts actually work in practice? And how do we ensure compliant tokenized offerings in a rapidly evolving regulatory and technical landscape?
Watch the full talk on YouTube: Fusion Talk: Legal & Tech Perspectives on Tokenization
What’s a “Real World Asset” Legally?
First myth: “Real World Asset” (RWA) is a legal term.
It’s not. As Elisenda explained, “RWA” is a market-driven classification, not a legal category.
For regulators, it matters what you're tokenizing—whether it’s equity, debt, or a revenue-sharing instrument—and how you’re representing it digitally.
Tokenization platforms are used as a tool to create a digital twin that reflects its real-world legal structure.
Do Token Standards Define Legal Classification?
Another misconception: ERC-20 vs ERC-721 determines whether a token is fungible or not in legal terms.
Wrong. While standards define technical behavior, legal classification depends on the asset itself and how it’s structured. This distinction was confirmed during Brickken’s participation in the European Blockchain Regulatory Sandbox, which validated the separation between technical and legal fungibility.
⚙️ Behind the Scenes: Live Tokenization Demo
Felipe demonstrated Brickken’s platform in action—tokenizing a real asset step-by-step, complete with:
- Asset type selection (equity, debt, revenue-share, etc.)
- Wallet connection and offering setup.
- On-chain document attachment (e.g. offering agreements, cap table metadata)
- Smart contract deployment with compliance rules embedded
The takeaway? Tokenizing an asset is no longer a technical barrier. Brickken enables compliant digital representations of real-world instruments, ready for issuance in minutes.
🛡 Are Smart Contracts Legally Enforceable?
Yes, if implemented correctly.
Smart contracts can reflect enforceable obligations when they meet traditional legal criteria (e.g. consent, parties, object). When paired with electronic signatures and attached documentation, they become legally robust instruments.
In fact, Brickken’s contracts are specifically designed to replicate real-world legal actions—like shareholder rights or payment structures—on-chain.
🔒 KYC, KYB, AML & Compliance on Blockchain: Transparency, Not Secrecy
A common myth: “Blockchain = money laundering.”
Elisenda and Felipe addressed this directly. Through Brickken’s KYC integration, wallet address verification, and audit trails, the platform increases traceability, not obscurity. In the demo, a user’s wallet was verified, matched to an identity, and granted access to an offering—proving full regulatory traceability.
Felipe summed it up best: “Cash is still king for laundering. Blockchain is traceable by design—if done right.”
The Big Picture: Adaptability Is Key
Tokenization cannot be one-size-fits-all. That’s why Brickken’s infrastructure is designed to:
- Support multiple asset types with tailored compliance needs
- Use smart contracts with modular enforcement mechanisms
- Operate across jurisdictions and legal frameworks
The session closed by reiterating Brickken’s approach: bridging the legal and technical gap with infrastructure that evolves alongside regulations and drives innovation without compromising compliance.
🎥 Watch the full talk here: YouTube – Brickken at STO Summit 2025
📚 Learn more about Brickken’s Digital Asset Infrastructure: www.brickken.com
