Germany has approved a new law that sanctions the use of Blockchain technology in the securities segment. The law comforts a rule that essential the use of paper certificates for all securities transactions. This clearly shows the tremendous opportunities for our Tokenization Asset Platform where Assets can be tokenized in the Digital Securities. 

Germany’s cabinet accepted the new law as part of its broader Blockchain acceptance strategy, Reuters reported. The European country formally has all securities issuers and holders to record them on paper certificates. This will at the present be substituted by a humble pass in a central securities depository which can be upheld by a bank.

On the other hand, issuers and holders can paper their securities on a Blockchain-based record. 

The Finance Ministry presented the bill in August, requesting it would defend the integrity, functionality, and transparency of the German stock market. 

The outline of the bill led German stock market giant Deutsche Borse to pull out of a Blockchain-based securities issuance scheme it had with the Swiss stock exchange SIX. 

In its declaration, the company specified that the new law would generate new framework situations for financial markets infrastructure grounded on Blockchain Technology as well as the linked changes in the KWG legislation (Banking Act). 

The Situation: The requirement for a paper-based letter for assigning securities under the German law has been a strain for the exercise of security tokens in Germany. With the concern of a draft bill (the "Bill") permitting the issuance of mechanical bearer bonds under German law, Germany is flagging the method for digitizing its financial markets. 

Scope: The Bill allows the issuance of securities in electrical form. Meantime, these e-Securities are just as bearer bonds, but the Bill is intended to allow other forms of securities, such as fund?or shares units, to be circulated in electronic form moving forward.