A Tokenized Path out of AML Isolation

In this brief note, the Tokenized Economies Institute outlines how tokenized financial infrastructures can help jurisdictions under AML scrutiny - such as Lebanon - regain access to international capital. By leveraging programmable transparency and lifecycle tracking of financial flows, tokenization enables both compliance and financial inclusion. The paper proposes a progressive approach where voluntary, incentive-driven traceability mechanisms such as token-based microfinance with expense documentation, can formalize economic activity, enhance institutional trust, and provide a scalable path out of regulatory isolation.