Clearstream, Deutsche Börse Group’s post-trade business, will enable asset managers to securely issue tokenized fund shares using distributed ledger technology (DLT).

This regulated issuance capability is backed by regulatory authorization from the Commission de Surveillance du Secteur Financier (CSSF) for Clearstream to act as a Control Agent under Luxembourg’s Blockchain Law IV.

The Control Agent acts on behalf of the fund issuer to oversee the integrity of tokenized issuance. Unlike a conventional registrar or account keeper, the Control Agent maintains the central issuance account on a distributed ledger, tracks the holding chain across participating account keepers, and ensures continuous reconciliation between the total volume issued and the positions held.

A central advantage of Clearstream’s offering is its hybrid approach. Asset managers do not need to launch an entirely new fund vehicle or overhaul their fund operating model to adopt DLT. Instead, they can tokenize selected share classes within existing umbrella structures such as UCITS or AIFs. Established fund ecosystem partners – including transfer agents, fund administrators, custodians, and depositaries – can continue their core servicing roles, while Clearstream provides the compliant DLT-based issuance and control layer.

Clearstream’s Control Agent service is designed to run on a fully integrated DLT platform, subject to the completion of CSSF regulatory processes. The permissioned DLT environment will support the issuance account and the controlled subscription, transfer and redemption of tokenized fund shares following validated instructions. Account whitelisting ensures that only authorized securities accounts can hold or receive shares, while the DLT provides full traceability of all positions and transfers.

The resulting model connects DLT-based fund issuance with the established fund ecosystem. It also creates a foundation for future connectivity with digital distributors and investor channels.

The launch of the Control Agent service marks a further step in Clearstream’s strategy to industrialize digital assets and foster coexistence between traditional, hybrid, and fully DLT-native financial instruments. It complements Clearstream Fund Services’ broader digital roadmap – including Vestima Digital and Digital Transfer Agent solutions – as well as Clearstream’s post-trade digital infrastructure, offering market participants an orderly, risk-managed evolution towards tokenized capital markets.

Philippe Mueller, Head of Digital Products and Transformation for Clearstream Fund Services, said:

“Tokenization delivers genuine value when cutting-edge technology is embedded in a trusted, resilient market infrastructure. Luxembourg’s Blockchain Law IV provides the legal certainty the market has been waiting for. Our authorization as a Control Agent offers asset managers a compliant, turn-key gateway to on-chain issuance, bridging the gap between conventional fund distribution and digital market infrastructure. Our core objective is to offer hybrid solutions that combine the best of traditional and digital worlds. Asset managers can start with a single tokenized share class, keep the operational partnerships that serve them well today, and scale their digital distribution footprint at their own pace.”