> ## Documentation Index
> Fetch the complete documentation index at: https://ryle.sh/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# What is the privacy problem of tokenized assets?

> Tokenized assets on public chains expose cap tables, holder lists, and redemption flows. Confidential tokenization keeps investor positions private while keeping supply and reserves auditable.

The privacy problem of tokenized assets is that putting funds, securities, or real-world assets on a public chain exposes the cap table, holder list, and redemption activity to anyone. Investor positions and transfers — information that is legally and commercially sensitive — become public. Confidential tokenization keeps those positions private while keeping supply, reserves, and operations auditable.

## Cap-table exposure

A tokenized fund or security on a transparent chain reveals who owns how much. The cap table — normally tightly held — becomes readable by competitors, journalists, and anyone else, undermining a basic expectation of private and regulated markets.

## Holder lists

Public token contracts expose the full list of holders and their balances. For regulated instruments this can violate confidentiality obligations and expose investors to targeting and surveillance.

## Redemption flows

Redemptions reveal who is exiting, when, and how much. Visible redemption activity can signal distress, trigger herd behavior, or leak the strategy of large holders.

## How confidential tokenization solves it

A [confidential tokenization platform](/docs/use-cases/tokenization-platforms) issues assets whose holder balances and transfers are encrypted onchain but still verifiable. Supply and reserves remain provable, and [selective disclosure](/docs/concepts/selective-disclosure) gives auditors and regulators scoped, logged visibility — so issuers meet their obligations without publishing the cap table.

## Related

* [Confidential tokenization platforms](/docs/use-cases/tokenization-platforms)
* [Selective disclosure](/docs/concepts/selective-disclosure)
* [Why enterprises need privacy onchain](/docs/problems/enterprise-privacy-onchain)
* [What are confidential digital assets?](/docs/what-are-confidential-digital-assets)

## FAQ

<AccordionGroup>
  <Accordion title="Can regulators still see what they need with confidential tokenized assets?">
    Yes. Selective disclosure provides scoped, time-bounded, audited views into specific holders or transactions for regulators and auditors, without exposing the full cap table.
  </Accordion>

  <Accordion title="Is supply still verifiable if holdings are private?">
    Yes. Zero-knowledge proofs keep total supply and reserves verifiable even though individual holder balances are encrypted.
  </Accordion>
</AccordionGroup>