Tokenized equities require a well-defined American Depositary Receipt (ADR) structure to effectively safeguard the interests of investors. This framework is essential as it provides a layer of regulatory oversight, ensuring transparency and accountability in the trading and ownership of these digital assets. By implementing an ADR structure, investors can benefit from enhanced legal protections, reduced risks associated with foreign investments, and easier access to international markets. Ultimately, a robust ADR framework can foster greater trust and confidence among investors in the evolving landscape of tokenized equity trading.
source: https://www.coindesk.com/coindesk-indices/2025/08/13/tokenized-equities-need-an-adr-structure-to-protect-investors