Security Token

The European Green Bond Standard is intended to establish a uniform requirements profile for green bonds in Europe. Can blockchain-based issuances meet these requirements?

Inflation rates are at a record high and key interest rates are rising. Investors are more interested in equity than debt in these times. But which equity products can actually be tokenized under German law?

Occasionally, BaFin refuses to approve WIBs until shortly prior to the start of the public offering, arguing that approval should be granted close in time to the start of the offering in order to ensure that the WIB is up-to-date. Is this administrative practice legally tenable?

The connection between investor rights and tokens is the decisive factor and biggest challenge when it comes to the design of token terms. The new consumer protection laws limit the options for legally waterproof designs since October 2021.

Security tokens are tokenized securities – and therefore generally tradable on traditional stock exchanges. Could the operation of a stock exchange be a reasonable alternative to a BaFin regulated crypto exchange?

Security token offerings generally require an officially approved security prospectus. But the entire prospectus is not required in each and every case.

The Electronic Securities Act (eWPG) came into effect on the 10th of June 2021 in Germany. Since then, businesses have the opportunity to issue bonds in the form of electronic securities. A special form of electronic securities are crypto securities, which are electronic securities that are registered in a crypto security registry. However, the eWPG […]

Next to the credit business, the deposit business is probably the most prominent banking business. According to the legal definition, deposit business is conducted, if unconditionally repayable funds are accepted by a third-party. However, the definition of deposit business intends for an important exemption for cases in which the repayment claim is securitized in bearer […]

Over the last years, so-called token sales have emerged as a new method of financing for businesses. By such, companies that seek funding offer interested investors their self-created blockchain tokens for purchase. These tokens allow their bearers the assertion of certain connected rights vis-à-vis the issuer. The rights that can be associated with the tokens […]

The public offering of security tokens on the crypto markets for financing purposes has become a viable alternative for innovative businesses since 2017. The options for funds-seeking companies range from the issuance of so-called utility tokens, which resemble a digital voucher usable exclusively within the business model of the token issuer to so-called security tokens, […]

The German Federal Government published its draft version of the legislation for the introduction of the Electronic Securities Act (eWPG) shortly before the turn of the year. There are several changes to the first draft version that was published in the summer of 2020, mainly consisting of systematical clarifications and the rewording of certain parts. […]

The German Ministries of Finance and Justice published their long-awaited joint draft legislation concerning the introduction of electronic securities in late July of 2020. The reform proposals included in the draft are not limited to a mere equating of paper-based securities and electronically issued securities to be introduced, but instead the Electronic Securities Act (eWPG) […]