Germany’s first crypto securities issue in accordance with the Electronic Securities Act
09. December 2021 | Medienmitteilung

Germany’s first crypto securities issue in accordance with the Electronic Securities Act

Chartered Investment establishes subsidiary e-Sec GmbH – e-Sec to manage crypto securities register in accordance with Section 16 German Electronic Securities Act from 10 December 2021

Chartered Investment Germany GmbH, a capital market specialist, has established e-Sec GmbH as a subsidiary. “This is a significant step for Chartered Investment because it allows us to create bonds based on the Ethereum blockchain for the first time”, explains Chartered Investment General Manager Daniel Maier. The “ZSquare Venture Opportunity Crypto Security” was the first crypto security to be issued under the strict regulations of the Electronic Securities Act on 8 December 2018. Accordingly, e-Sec GmbH will maintain a crypto securities register on a tamper-proof recording system in compliance with Section 16 Electronic Securities Act. e-Sec GmbH will commence its business operations on 10 December 2021.

Bearer bonds can be issued as crypto securities after the Electronic Securities Act went into effect on 10 June 2021. This process is accomplished through registration in a crypto securities register, which necessitates the use of a registrar. According to Section 16(2) Electronic Securities Act, the registrar is the person designated as such by the issuer to the holder. In accordance with Section 32 Banking Act, the registrar is required to keep a crypto securities register. From a technological and regulatory standpoint, this provision places the crypto registry administrator at the centre of attention.

Chartered Investment has established a service provider for the management of crypto registers, e-Sec GmbH, which will begin operations as a crypto securities registrar on 10 December 2021. Chartered Investment previously supported the world’s first blockchain certificate issue in 2018. The establishment of e-Sec GmbH now marks the next step in the Capital-Markets-as-a-Service business.

To set up the technological infrastructure for register administration, e-Sec GmbH relied on the expertise of TokenForge GmbH, an innovative leader in the deployment of blockchain applications. Lindenpartners, a Berlin-based law firm, provided legal counsel to e-Sec.

As register administration is a strictly national business, e-Sec GmbH will first offer crypto securities register administration services locally. As soon as the necessary legal framework is in place, the company will be able to expand into the EU/EEA regions.