Vietnam to Allow $14 Trillion in Asset Tokenization

Vietnam’s government announced plans to allow tokenization of roughly $14 trillion in assets by drafting a legal framework to permit digital tokens that represent ownership of real-world assets and to enable their trading on regulated platforms.

Authorities estimate the eligible pool includes financial and nonfinancial assets such as real estate, equities, bonds and commodities. Tokenization records ownership rights on distributed ledgers and allows assets to be traded in smaller units, enabling fractional ownership and access through digital trading venues.

Draft rules will cover which asset types may be tokenized, licensing standards for trading platforms and custodians, investor-protection measures and anti–money laundering safeguards. Regulators plan to align tokenization rules with existing securities, property and corporate laws and to clarify tax treatment for tokenized transactions.

The government intends to run pilot programs allowing selected institutions to issue and trade tokenized instruments under supervision before wider implementation. Public consultations on draft regulations and technical standards for smart contracts and interoperability are expected. Authorities did not set a firm timeline and described a phased approach beginning with limited pilots.

Regulators identified risks that include fraud, cyberattacks on digital platforms, inadequate custody arrangements, price manipulation and challenges enforcing token-holder rights. They plan to set standards for custody, legal recognition of tokenized ownership and dispute-resolution mechanisms to address those risks.

Industry participants and technology firms will test tokenization models in regulatory sandboxes and pilot projects. Trading venues that list tokenized assets are expected to meet operational, capital and compliance requirements similar to those for traditional exchanges. Licensing rules for wallet providers and custodians are expected to address private-key management and customer asset security.

Vietnam’s central bank has previously warned against using cryptocurrencies as a means of payment, while other agencies have been exploring ways to regulate digital-asset activities. Regulators presented the tokenization framework as part of efforts to modernize financial infrastructure and expand digital finance offerings.