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      Luxembourg Allows Investment Funds to Issue Shares on Distributed Ledgers

      Luxembourg has officially confirmed that investment funds can issue shares natively on distributed ledgers, with these shares existing solely in token form. This announcement was made on October 2, 2026, by the Luxembourg Financial Supervisory Authority (CSSF) in a newly released document titled "FAQ - Tokenisation."

      As the largest investment fund jurisdiction in Europe and the second-largest globally, Luxembourg's move is significant for the financial sector. The CSSF's guidance clarifies that collective investment undertakings (UCI) in Luxembourg can utilize distributed ledger technology for issuing shares, provided they adhere to the existing regulatory framework. The document emphasizes that the method of issuance does not alter the legal form of the underlying securities, allowing for shares to be issued in either registered or paperless formats.

      This development marks a notable step in the integration of digital assets within traditional finance, potentially paving the way for more innovative investment solutions in the future.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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