Public versus permissioned ledgers, the main token standards for regulated assets, compliance rules inside the smart contract, and how to choose a chain.
Public or permissioned
- Public chains offer reach and interoperability; anyone can run a node.
- Permissioned chains restrict who validates transactions and who can read them.
- Many regulated issuers combine the two: a public chain with a permissioned token.
Common token standards
- ERC-20 is the basic fungible token standard on Ethereum and compatible chains. It has no built-in transfer checks.
- ERC-3643 adds on-chain identity and transfer rules, so only eligible investors can hold the token.
- CMTAT, from the Capital Markets and Technology Association in Switzerland, is an open framework for tokenizing securities.
Compliance inside the smart contract
- Allowlists, holding limits and country rules can be checked before every transfer.
- Issuers often keep powers to pause, freeze or force-transfer tokens, for court orders or lost keys.
- Those powers must match the legal documents and be disclosed to investors.
Choosing a chain
- Weigh the security track record, fees, finality, the custody and wallet ecosystem, and where your investors already are.
- Plan for moving chains or bridging, and the risks bridges bring.
- Proven beats new.
Key takeaways
- Regulated assets need transfer rules, not just a token.
- Admin powers in the code must match the legal documents.
- Choose the chain for its security and ecosystem, not its speed claims.
Sources
Educational content only, not legal, tax or investment advice. Based on EU and Swiss rules as of September 2026. Check the official texts before relying on anything here.