Next Level im Treasury & Collateral Management

Crypto securities are one of the most important forms of digital assets in the German market. They are regulated under the Electronic Securities Act (eWpG). This is particularly appealing to companies that want to streamline their processes through digital issuance while reaching a broader base of investors. Financial service providers also benefit from the legislation by acting as register maintainers for crypto securities—allowing them to open up new business areas and position themselves as innovative market players.

While crypto securities under the eWpG are currently not permitted to be traded or settled through traditional market infrastructures, the DLT Pilot Regime at the EU level creates opportunities to reinvent these infrastructures using distributed ledger technology (DLT). With the appropriate license, the trading and settlement of financial instruments on a DLT-based infrastructure is possible within a regulatory sandbox. The regime distinguishes between DLT-MTF (Multilateral Trading Facility), DLT-SS (Settlement System), and DLT-TSS (Trading and Settlement System).