Skip to content
RWA Foundation

RWA FOUNDATION

Transfer Agent

Who keeps the official ownership records

Foundations · Lesson 1.5

A transfer agent keeps the official ownership records of a security and helps enforce the restrictions on who can hold it. When a tokenized security changes hands, those records and restrictions decide whether the transfer is allowed, based on checks such as KYC, investor eligibility and jurisdiction.

Some tokenized assets have no separate transfer agent. They build the same restrictions into the token itself, using an allowlist of approved wallets that is checked before every transfer. Either way, a token can move onchain in seconds. Legal validity depends on the law and the product's terms and ownership records.

Wally’s note: bouncer energy

A token can move in seconds. Whether the transfer is valid depends on the law, the product's terms and the ownership records, not on the blockchain alone.

Open this lesson in the interactive textbook →