CSSF FAQ regarding the use of DLT in Tokenised Funds
In a recent FAQ published on 2 October 2026, the Commission de Surveillance du Secteur Financier (CSSF) answered key questions regarding tokenisation. Distributed Ledger Technology (DLT) can be used to digitally represent assets or issue traditional assets in tokenised form. DLT can be used to perform the tasks of issuing, storing, and transferring traditional asset classes in order to be more cost effective and as a way of improving efficiency.
Undertaking for Collective Investment Administrators (UCIAs) acting as a registrar agent or as a control agent can expect to see an impact in how they exercise their role if they wish to use the DLT.
The UCIA performing a registrar function in regard to an UCI which issues registered units/shares may do so using DLT to maintain the register. In the case of a UCI which issues dematerialised units/shares, the UCIA may use the DLT if it is an eligible entity authorised as UCIA.
If a UCI chooses to issue both tokenised and traditional units/shares, the role of registrar agent may be done by multiple UCIAs. In order to do this, the CSSF has clarified that UCIs must ensure that the division of tasks does not cause the general supervisory function to become too difficult, the risks and implication of their operating model are disclosed to investors, consolidated oversight of all units/shares is done by the Investment Fund Manager (IFM) or one of the UCIAs, the IFM and UCI properly manage risk arising from having multiple UCIAs, and they fully comply with all applicable law.
Control agents may be appointed as set out by the Dematerialised Securities Law and subject to the provisions in Regulation (EU) 2022/2554 of the European Parliament and of the Council of 14 December 2022 on digital operational resilience for the financial sector (DORA).
Control agents may seek technical support from third-party service providers in the process of tokenisation of UCIs, though they have a duty to notify the CSSF of this arrangement.
Prospective control agents must notify the CSSF at least two months before beginning their activities in Luxembourg. While a single entity may serve as both UCIA serving as registrar and control agent, the appointment of a control agent does not waive the need for a UCIA exercising the registrar function. This is due to the imparity of the tasks required from each entity.
The CSSF recommends that entities planning to offer fund tokenisation should start an early dialogue with them where a description of the proposed project is provided in order to identify obstacles before the formal initiation of the procedure.
Given our team’s expertise in navigating the CSSF’s processes, we are capable of aiding you in all legal matters relating to the creation of a tokenisation project as well as liaising with the CSSF.
Photo – J. Deldemme
