Ledger-based Securities

Co-author of the Swiss Blockchain Federation Circular in 2021.

The Swiss Blockchain Federation circular “Ledger-based Securities” explains the legal foundations and practical implications of the new category of digital securities rights under Swiss law. With the introduction of so-called ledger-based securities as part of the Swiss DLT legislation, a new form of securities was created in which rights can be recorded, transferred, and enforced directly through an electronic register, for example on a blockchain.

The document explains how these digital securities rights are structured and which requirements such a securities register must fulfil, particularly regarding integrity, transparency, and technical reliability. It also describes the role of so-called registration agreements, which stipulate that the rights can only be exercised and transferred through the electronic register.

Furthermore, the circular addresses practical aspects of implementing ledger-based securities, for example in the context of tokenizing shares or other financial instruments. It demonstrates how the new legal framework enables the digitalization of capital market instruments while ensuring the legal certainty and enforceability of the underlying rights.

Overall, the circular highlights the central role of ledger-based securities for the development of digital securities and tokenized assets. They create a legally recognized bridge between traditional securities law and blockchain-based infrastructure, thereby strengthening Switzerland’s position as a leading hub for digital financial market innovation.

The full document can be accessed here: https://blockchainfederation.ch/wp-content/uploads/2024/07/SBF-2021-01-Ledger_Based_Securities_2021-10-12.pdf