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By Dr. Sebastiaan Niels Hooghiemstra*
Recently, there is an increasing interest from promoters to use distributed ledger technology (“DLT”) for “issuing” fund units/shares in Luxembourg. The use of DLT, amongst others, simplifies the process of distributing Luxembourg funds to (retail) investors and makes it possible for fund promoters to raise capital simply. In practice, there are two broad ways of using DLT for “issuing” fund units/shares in Luxembourg: (i) tokenizing fund units/shares by means of which “traditional” fund units/shares are wrapped into a token that cannot be issued/transferred without the related tokens and (ii) “issuing” “native” or “DLT” fund units/shares, i.e. fund units/shares that are “issued” directly on the DLT. This contribution...
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