Luxembourg regulatory authority approves issuance of investment fund shares natively on blockchain as tokenized assets.
Regulation & Gov ·
Luxembourg's financial regulator has confirmed that investment funds operating in the jurisdiction can issue fund shares directly as blockchain-based tokens, with the units existing solely on distributed ledger technology. The Commission de Surveillance du Secteur Financier released its FAQ on Tokenisation on October 2, 2026, explicitly stating that Luxembourg UCIs (undertakings for collective investment) may issue native tokens provided their operating model complies with applicable regulatory frameworks. Fund units issued this way can take registered or dematerialised form under Luxembourg's securities law.
The regulator emphasised a technology-neutral approach, evaluating tokenisation risks based on how it is implemented rather than the underlying technology itself, and acknowledged potential benefits in efficiency and cost. The FAQ clarifies additional operational matters including the role of control agents, procedures for entities issuing both tokenised and traditional units simultaneously, and applicability of digital operational resilience requirements under DORA.
The document invites fund managers to engage with the CSSF early in project planning to discuss legal token qualification, contractual structures, and licensing requirements. The FAQ does not constitute comprehensive guidance and may be updated as the regulator gains further experience with blockchain-based fund structures.