Digital Assets Master Data (DAM) All relevant master data for digital assets in a single place

Crypto assets - also known as cryptocurrencies - are digital assets based on blockchain or similar DLT systems. They can be used as a means of payment, store of value or speculative investment (e.g. Bitcoin, Ether).

Crypto securities, on the other hand, are electronic securities as defined by the eWpG that are created through entry in a crypto securities register. They are subject to securities law and are legally classified differently to traditional crypto-assets.

In short: crypto securities are regulated financial instruments – cryptocurrencies are usually not.

Digital versions of traditional securities, saved on a DLT. They enable more efficient settlement, greater transparency and new ways of raising capital.

Centrally registered securities are securities that have been issued (registered) in the central register in accordance with the eWpG.

A crypto token is a digital asset that is based on a blockchain or comparable distributed ledger technology. Crypto tokens can fulfil different functions - for example as access to a project, as a medium of exchange or to represent ownership or participation rights.

Both crypto assets and crypto securities can be issued in the technical form of a token.

Stablecoins are crypto-assets whose value is pegged to other assets - for example, fiat currencies (e.g. US dollars, euros), commodities such as gold or baskets of securities - in order to reduce their volatility. Unlike other cryptocurrencies such as Bitcoin, which can fluctuate significantly in value, stablecoins are designed to maintain a stable value, making them suitable for use as a means of payment or a store of value. Stablecoins are regulated in the EU under MiCAR.

A central register within the sense of the eWpG is an electronically maintained register in which so-called central register securities are entered. It is used for the central entry and publication of these securities.

The register is managed by an authorized company, such as a central securities depositary - in Germany this is currently Clearstream Banking AG.

A crypto securities registrar is an entity that maintains an electronic securities register based on distributed ledger technology (DLT) in accordance with the eWpG.

If a security is created by entry in such a register, it is considered a crypto security. The register must meet certain legal requirements and can be taken over by suitable companies that have the appropriate authorization.

The Electronic Securities Act (eWpG) is a German law that has defined the legal framework for the issuance and trading of electronic securities since June 2021.

There are two types of electronic securities:

• Central register securities issued or registered in a central register
• Crypto securities issued or registered in a decentralized register by a so-called crypto securities registrar

The eWpG thus creates the basis for the digitalisation of the securities market in Germany.

The Electronic Securities Act (eWpG) allows the legally secure issuance of crypto securities & electronic central securities register securities in Germany. Thanks to the eWpG, fully-fledged shares, bonds and fund units can be issued in Germany entirely on the blockchain and in digital form - without a certificate or central custody at the CSD. Our services provide suitable register information and identifiers.

The Markets in Crypto Assets Regulation (MiCAR) is the first EU-wide regulation for the regulation of crypto assets and crypto services. It is intended to create a uniform legal framework for the crypto market in Europe.

The objectives of the regulation include:

• Protecting investors and consumers
• Strengthening of market integrity
• Prevention of money laundering and terrorist financing

The DLT Pilot Regime is a pilot program introduced by the European Union that enables investment companies, market operators and central securities depositaries to test the trading and settlement of tokenised financial instruments based on distributed ledger technology (DLT) in regulated markets. It creates a temporary “regulatory sandbox” that provides a simplified regulatory framework to promote innovation in the financial industry. The pilot program is limited to a certain period of time, but can be extended.

DLT (Distributed Ledger Technology) is a generic term for technologies that enable distributed, shared databases. Blockchain is a special form of DLT in which data is stored in individual blocks and linked together chronologically.

DLT comprises various types of distributed ledger systems, including blockchains, directed acyclic graphs (DAGs) and other approaches. Blockchain is a particular implementation based on a linear block structure and a consensus-based validation mechanism.

In short: all blockchains are DLT - but not every DLT is a blockchain. DLT stands for the overarching technical framework, while blockchain is a specific manifestation with fixed structures and processes.

A DLT-TSS (Distributed Ledger Technology Trading and Settlement System) is a system that enables the trading and settlement of DLT-based financial instruments - such as tokenised securities - in a decentralised environment. It combines the functions of a DLT MTF (Multilateral Trading Facility) and a DLT SS (settlement system).

DLT SS (Distributed Ledger Technology Settlement System) is a securities settlement system based on distributed ledger technology. It is operated by a central securities depositary and is used within the DLT Pilot Regime for the custody and recording of DLT financial instruments.