A podcast discussion featuring the ERC-3643 Association highlights a critical and underappreciated distinction in institutional tokenization: not all token standards actually confer legal ownership of the underlying asset to the holder. The ERC-3643 standard is designed for permissioned, compliance-embedded tokens used in regulated contexts, and its proponents argue that institutions using less rigorous standards may hold tokens that lack enforceable claims on collateral.
For Armada's crypto repo desk, this is a direct collateral quality issue. If tokenized T-Bills accepted as repo collateral are issued under a standard that does not provide clean legal title transfer, Armada's no-rehypothecation policy and Fireblocks custody arrangement may not be sufficient to protect against counterparty default. Legal counsel should verify which token standard governs each tokenized collateral instrument and whether it provides the ownership enforceability required under Armada's repo agreements.