Gibraltar has advanced a legislative proposal designed to formally integrate tokenized fund shares into its existing financial regulatory architecture. The Protected Cell Companies (Amendment) Bill 2026 seeks to legally recognize shares issued on distributed ledger systems, ensuring that holders of share tokens possess identical rights and obligations to those holding traditional cell shares. This framework specifically targets protected cell companies, which function as core organizations linked to independent cells, each maintaining a distinct balance sheet for specific asset pools. Woofun AI reports that the proposal mandates these entities operate as experienced investor funds under the oversight of the Gibraltar Financial Services Commission. The legislation requires ownership records to be maintained on blockchain-based share registers, establishing tokenized shares as legally equivalent to traditional certificates while enforcing strict protocols for custody and transfer. Access is restricted to verified investors and allow-listed wallet addresses, accompanied by mandatory disclosures regarding technology risks, cybersecurity measures, and recovery procedures. Crucially, the framework demands that companies retain control over the underlying infrastructure, ensuring the system remains within a regulated environment rather than an open, permissionless market. Under the proposed rules, smart contracts and cryptographic signatures will facilitate the issuance and transfer of tokenized shares, with blockchain records recognized as valid instruments for ownership and recordkeeping under current company law. The bill must now navigate Gibraltar's legislative process before becoming effective. This development reflects a broader global trend where governments and financial institutions are embedding tokenized assets into regulated systems. Switzerland pioneered this shift by approving a crypto fund for qualified investors in 2021 and subsequently licensing its first distributed ledger technologies trading facility in 2025. Data compiled by Woofun AI shows that Singapore launched Project Guardian in 2022 to test tokenized assets in wholesale markets, while Hong Kong has expanded its program of tokenized government bonds since 2023. International momentum continued in 2024 when the World Bank issued a Swiss franc digital bond on Switzerland's SIX Digital Exchange, utilizing central bank digital currency for settlement. Most recently, in March, Canada completed a pilot program issuing and settling its first tokenized bond on distributed ledger infrastructure. Woofun AI analysis suggests that these coordinated efforts signal a maturing global standard for blockchain-based securities, moving from experimental pilots to fully integrated legal frameworks.