A law firm with a 360° view of tokenisation

Thanks to its in-house fintech task force, which combines legal, regulatory and technological expertise, Elvinger Hoss Prussen is well-equipped to address the rapidly developing role of tokenisation in the funds industry, say Sophie Dupin and Yves Elvinger.

Tokenisation is now in the spotlight in Luxembourg, partly due to the country’s four Blockchain Laws. It aims to make the fund industry more transparent, more secure and less costly. So what kind of fund structures can be tokenised?

“Everything can be tokenised!” says Sophie DupinSophie Dupin, a partner at Elvinger Hoss Prussen whose work focuses on asset management, investment funds and fintech. “All you need to do is design your ideal—and we’ll do it. The current legal and regulatory environment enables us to do almost everything we want, of course taking into account applicable laws and regulations. There are safeguards, with authorisations and disclosures to be made, but today, almost everything is possible.”

Both fund shares and assets can be tokenised, and people are looking into tokenisation and blockchain in order to make their fund operations even more efficient. One use case is the tokenised money market fund, says partner Yves ElvingerYves Elvinger, who specialises in investment funds, management companies and AIFMs, and regulatory and compliance.

“This is particularly interesting because money market instruments are eligible as collateral. The technology can help make settlement of margin calls more efficient.” In a traditional setup, adjusting collateral exposure can take time. But this technology can allow instant settlement, explains Elvinger.

“Laws and regulations in Luxembourg should be interpreted in a tech-neutral way. As long as we are able to comply with the rules, we are not prevented from using these types of technologies,” he adds. The industry already benefits from digitalisation, but the next step is automation. “Tomorrow, you’ll be able to use blockchain technology to deal with funds in a more automated way.”

Tech pioneer

With the support of Elvinger Hoss Prussen, Azimut in 2023 tokenised the units of one of its Luxembourg alternative investment funds, while Franklin Templeton in October 2024 received CSSF approval to launch the first fully tokenised Ucits fund using proprietary technology.

Innovation is also a way for Luxembourg to remain competitive, and the law firm has always been “very involved in new evolutions that bring added value to the fund industry,” says Dupin, who points out that Elvinger Hoss Prussen was the pioneer law firm to obtain cloud outsourcing for regulated entities, shortly after the CSSF’s circular on the topic was published in 2017. “This was a big step for Luxembourg, bringing more efficiencies and data capabilities.”

A strong link between legal requirements and technical aspects is at the heart of the “fintech task force”at Elvinger Hoss Prussen.

In addition to Dupin and Elvinger, it counts roughly a dozen experts with diverse backgrounds – including partners Olivia Moessner, Anaïs Sohler, Tiago Nogueira and senior associate Iren Butrakova--who bring a 360° perspective to the table.

The team has a deep understanding of both the regulation and the operational side of the tech, highlights Dupin, making them uniquely equipped to understand client needs. And thanks to years of experience with other technology, like tools for transfer agent services or AML, they’re also familiar with CSSF procedures, bringing added value to clients when it comes to timing, information submission, regulatory constraints and expectations.

It’s not one-size-fits-all. Instead, it’s key to find the most suitable operating model when working on tokenisation projects, emphasises Elvinger, whether that’s a new fund structure or adapting an existing one. This depends on client needs, service providers, how the manco operates and which functions are performed internally. “We can help clients to identify the model that fits best with their setup.”

“This is an environment that is changing very quickly,” he adds. It’s difficult to predict how things will look in a few years, but the Luxembourg framework provides “additional flexibility” when defining operating models.

Moving forward

Beyond attracting interest from the international market, ideas like tokenisation and DLT can also attract next gen investors who might not have been interested in the fund industry, says Dupin. “It’s not only about tokenisation,” concludes Elvinger. “It’s about a new digital way to access funds.”

To find out more about fund tokenisation, download our brochure "Focus on: Fund Tokenization".

This article was first published in Paperjam (May 2026). For further information, please visit [Paperjam].