Distributed ledger technology (DLT) is increasingly used to underpin the issuance, transfer, and servicing of financial instruments. As the technology matures, its application is expanding from pilot projects to live market operations, particularly in the fields of securities and fund tokenisation.
Luxembourg has developed one of the most comprehensive legal frameworks in Europe to support these activities, embedding DLT across the lifecycle of financial instruments through a series of legislative reforms known as the Blockchain Laws (I–IV).
2019 Blockchain Law I
Established that DLT systems can be used for the transfer or securities.
2021 Blockchain Law II
Expanded the legal framework to cover the issuance of securities using DLT.
2023 Blockchain Law III
Implemented the EU’s DLT pilot regime and provided further legal certainty for the use of DLT-based securities as financial collateral.
2024 Blockchain Law IV
Extended DLT scope to fund units/unlisted equity and introduced the Control Agent role which simplifies issuance, custody, and reconciliation structures.
The Blockchain Bill IV makes it easier to issue, hold and reconcile dematerialised securities using DLT.
What can you do from Luxembourg?
1. Issue and govern digital securities (debt, funds, select private equity cases) under a DLT-ready national regime.
2. Display securities on LuxSE SOL for documentation access and data circulation; align investor communications with recognised exchnage processes.
3. Run tokenised fund models with a CSSF authorised Control Agent to assure integrity and compliance.
Why list or issue in Luxembourg?
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1. List and display
The Luxembourg Stock Exchange admits security tokens to its Securities Official List – enhancing visibility and data dissemination for DLT instruments.
2. Fund tokenisation made practical
Under Blockchain Law IV, the control agent role allows funds to issue, hold and manage tokenised units directly on-chain, reducing intermediary layers and reconciling issuance in real time. Investre received the first control agent licence in July 2025.
3. Efficiency, transparency, and liquidity advantages
Tokenised fund units enable fractional ownership, faster settlement, smart-contract automation and transparency across the investor/instrument lifecycle. Luxembourg’s fund centre gives tokenised funds a ready ecosystem.
4. Flexible custody and infrastructure
The Control Agent role allows direct custody by investors or custodians without a traditional central account keeper structure, reducing intermediary costs and increasing flexibility.
What's happening in practice
Getting started
Firms exploring the issuance of security tokens or tokenised funds should first consult legal counsel familiar with Luxembourg’s Blockchain Laws I–IV to identify the most suitable structure. Early dialogue with the CSSF’s digital assets team is encouraged to discuss governance and, where relevant, the appointment of a control agent for fund tokenisation.
Issuers can then use the Luxembourg Stock Exchange’s Securities Official List (SOL) to display their instruments and enhance transparency, supported by the country’s strong network of regulated technology and post-trade service providers.
