Tokenization Issue digital assets on the blockchain

A digital representation of a financial security recorded on a blockchain. In Germany, they are covered by the Electronic Securities Act (eWpG) and have specific requirements regarding its registrar and custody. They have the same protection and negotiability as paper-based securities.

A subset of security tokens, legally equivalent to shares. They represent ownership rights to the shares of a company. In Germany, according to the current legal situation, shares may not yet be issued as equity tokens.

Stands for Non-Fungible Token. They represent a unique item, such as art and collectibles, which are not interchangeable with other items because of their unique properties. The blockchain protocol secures its record of ownership.

A digital asset that represents ownership of a tradable asset mapped via a blockchain. In Germany, they have limited negotiability since they are not subject to the good faith buyer protection and have no protection in case of foreclosure and insolvency.

A Security Token Offering (STO) is financing method event in which digital securities are issued and offered to the public using blockchain technology.

Smart contracts are automated contracts that are triggered once certain criteria have been met. They work according to the principle "If..., then...". A smart contract could be used in the case where a token is automatically transferred from wallet "A" to wallet "B" as soon as criteria "C" (e.g. receipt of funds) and "D" (e.g. release by issuer) have been met.

Crypto tokens which give access to certain services or products, similar to an admission ticket or a voucher. The majority of previously known crypto tokens issued in an ICO in Germany belonged to this category. They do not constitute securities within the meaning of the WpPG or capital investment within the meaning of the VermAnlG. In many cases, tokens like this are also not financial instruments under the KWG.