Clifford Chance

Luxembourg law recognises the use of DLT for the issuance of dematerialised securities

28 January 2021

The Luxembourg law of 22 January 2021 modernising the existing legal framework for dematerialised securities entered into force on 26 January 2021. This law forms part of the ongoing modernisation of Luxembourg's legal framework for finance transactions, in continuation of the law of 1 March 2019 which already expressly recognised the possibility to hold and register book-entry securities in securities accounts by way of distributed ledger technology (DLT). The law recognises the possibility to use secure electronic recording systems (including DLT) for dematerialised securities (whether at issuance or upon conversion from another form of security). This briefing summarises the key aspects of the new framework.

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