Luxembourg Advances Digital Securities with Blockchain Law 4

Luxembourg has taken a significant step forward in the realm of digital finance by adopting Blockchain Law 4. This new legislation expands the country's legal framework to support digital securities and tokenization, positioning Luxembourg as a leader in blockchain innovation within the European Union.

Key aspects of Blockchain Law 4 include:

1. Introduction of monitoring agents for securities issuance using distributed ledger technology (DLT)

2. Streamlining of securities issuance processes through DLT

3. Provision of a flexible alternative to traditional holding models

The law aims to increase efficiency and flexibility for issuers while maintaining legal certainty and transparency for investors. It builds upon the foundation set by the previous three Blockchain Laws implemented between 2019 and 2023.

Recent projects showcasing Luxembourg's leadership in this area include:

- The European Investment Bank's launch of a digital bond on HSBC's Luxembourg-based Orion platform

- Franklin Templeton's introduction of a tokenized money market fund in the country

These developments highlight the practical applications of the new legal framework and demonstrate Luxembourg's commitment to remaining at the forefront of financial technology innovation.

By adopting Blockchain Law 4, Luxembourg strengthens its position as a key player in the evolving financial landscape, paving the way for further advancements in tokenization and the use of DLT in the financial sector.

luxembourg-advances-digital-securities-with-blockchain-law-4 cointrust.com/market-news/luxembourg-advances-digital-securities-with-blockchain-law-4

---

Join Luxembourg Expats community reaching 100k+ expats - signup free luxembourgexpats.lu