Íø±¬³Ô¹Ï

Home   News   Features   Interviews   Magazine Archive   Symposium   Industry Awards  
Subscribe
Íø±¬³Ô¹Ï
Leading the Way

Global Íø±¬³Ô¹Ï Finance News and Commentary
≔ Menu
Íø±¬³Ô¹Ï
Leading the Way

Global Íø±¬³Ô¹Ï Finance News and Commentary
News by section
Subscribe
⨂ Close
  1. Home
  2. Technology news
  3. Luxembourg Parliament adopts Blockchain Law 4
Technology news

Luxembourg Parliament adopts Blockchain Law 4


24 December 2024 Luxembourg
Reporter: Carmella Haswell

Generic business image for news article
Image: dbrnjhrj/stock.adobe.com
Blockchain Law 4 has been adopted by the Luxembourg Parliament in an effort to expand the country’s legal framework to support the development of digital securities and tokenisation.

The framework aims to enable the financial sector to leverage distributed ledger technology (DLT) while ensuring legal certainty, flexibility, and transparency for issuers and investors.

According to Luxembourg for Finance, the agency for development of the region’s financial centre, this legislation introduces the possibility of using a monitoring agent for securities issuance.

The agent is designed to fully utilise DLT technology in carrying out its missions, which includes maintaining the issuance account, tracking the chain of title for securities, and reconciling issued securities.

This new, optional regime for issuers looks to offer an alternative to the existing model which currently requires a two-tier holding chain between the central account keeper and secondary account keepers.

In addition, the new law aims to allow for increased efficiency for securities issuance via DLT.

Following the first three Blockchain Laws, implemented between 2019 and 2023, this new legislation confirms Luxembourg’s role within the European Union in the use of DLT technology, particularly in the domain of dematerialised securities issuance, adds Luxembourg for Finance.

The group adds: “Luxembourg’s leadership has been once again illustrated in the past few weeks with the launch of a digital bond by the European Investment Bank on HSBC’s Luxembourg-based Orion platform as well as Franklin Templeton’s tokenised money market fund in Luxembourg.â€
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Íø±¬³Ô¹Ï Finance Times
Advertisement
Subscribe today
Knowledge base

Companies in this article
→ HSBC

Explore our extensive directory to find all the essential contacts you need

Visit our directory →
Glossary terms in this article
→ Leverage

Discover definitions, explanations and related news articles in our glossary

Visit our glossary →