> For the complete documentation index, see [llms.txt](https://t-blocks.gitbook.io/t-blocks-documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://t-blocks.gitbook.io/t-blocks-documentation/digital-infrastructure/tokenization-architecture.md).
# Tokenization Architecture
T-Blocks digital infrastructure converts Luxembourg-governed financial instruments into digital tokens that can be settled, held, and transferred on blockchain rails, while preserving the full legal framework and creditor hierarchy of the underlying instrument.
One foundational principle governs the architecture: the legal instrument always comes first. A Luxembourg note is structured and issued within T-Blocks Trio Fund before any tokenization occurs. The token is a digital representation of that instrument, an access and settlement layer, not a separate asset class and not a substitute for the legal instrument. This sequencing applies to every issuance on the platform, including those using third-party tokenization infrastructure on alternative blockchain ecosystems.
**Legal layer.** The instrument is structured as a ring-fenced SubFund under the Luxembourg Securitisation Law of 22 March 2004. Legal rights, creditor hierarchy, security package, and governance are defined in the Specific Management Regulations and transaction documentation. This layer is identical across both the ISIN rail and the digital rail.
**Compliance layer.** KYC/AML verification, investor eligibility, transfer restrictions, and sanctions screening are enforced before any token is issued or transferred. Compliance logic is embedded at the smart contract level and enforced at the protocol layer, not administratively.
**Settlement layer.** Tokens are issued on T-Blocks primary settlement infrastructure, currently the XRP Ledger, with legal effect under Luxembourg Blockchain Laws I–IV (2019–2024). Where required, tokenization on alternative blockchain ecosystems may be executed through appointed third-party partners, subject to the same compliance standards.
T-Blocks digital tokens are regulated financial instruments structured under Luxembourg securitisation law, governed by an independent service provider stack, that settle on blockchain infrastructure.