Clearstream has been authorized by Luxembourg's financial regulator, the CSSF, to act as control agent for tokenized investment funds under the country's Blockchain Law IV, the company said October 28.
Under the framework, asset managers can issue tokenized share classes of existing UCITS and alternative investment funds on a permissioned ledger. Clearstream keeps the issuance account and controls subscriptions, transfers and redemptions, while existing transfer agents, administrators and custodians keep their roles.
The service runs on an integrated DLT platform that remains subject to completion of CSSF regulatory processes. Clearstream gave no launch date and named no customers or fund managers.