Token-based funds

Funds on the blockchain:
Fast. Smart. Global.

Tokenization and blockchain technology are changing the fund industry and asset management. Benefit from the advantages of tokenized funds with Cashlink - more efficient processes, new distribution channels and regulatory compliance.

New sales channels increase your assets-under-management

Maximum efficiency & security thanks to blockchain technology

Cost savings (through smart contracts) & automatable processes and lifecycle events

An overview of tokenized funds

The fund industry is in a state of flux: regulatory changes, new technologies and increasing investor requirements are shaping the market. Blockchain technology in particular is opening up new opportunities – from more efficient processes to more direct access to new investor groups. The tokenization of fund units can reduce costs, automate processes and create innovative investment offerings. In particular, tokenized money market funds are highly popular in the current interest rate environment and can be easily placed via Web3 brokers. MiCAR-regulated stablecoins can even be used to process payments in real time and on-chain within the European Union. For asset managers, this offers great potential to increase their assets-under-management through new target groups and at the same time benefit from the technology.

Would you like to know how you can benefit from these developments? We’ll show you how you can digitize funds with Cashlink and future-proof your offering.

The advantages of tokenized funds at a glance

For asset managers

Automated processes using smart contracts significantly and sustainably reduce administrative and settlement costs.

Tap into new, digitally-savvy investor groups and increase your global reach.

Position yourself as a pioneer in digital asset management with modern, tokenized fund offerings.

Benefit from real-time transactions and faster settlement processes.

For investors

Invest flexibly and efficiently, without intermediaries and with immediate availability of fund units.

Benefit from smaller denominations and extended investment opportunities.

Store your fund units securely in your personal wallet or, as before, with your trusted custodian bank.

Invest with Stablecoins directly in the desired funds in your familiar Web3 application.

usecase

Metzler issues first DLT fund units with Cashlink and fundsonchain

Cashlink is shaping the future of the fund industry.

Metzler Asset Management GmbH (MAM) has issued Germany’s first crypto fund units in the form of UCITS special funds as part of a pilot project. The issuance took place on the public Polygon blockchain, with a new share class of the “Metzler Global Growth Sustainability” fund in token form. Cashlink acted as crypto securities registrar and tokenization service provider, while Bankhaus Metzler acted as custodian. Fundsonchain handled the settlement of the share certificate transaction. The fund units were acquired by Union Investment, among others, and integrated into its multi-asset funds.

This project marks an important milestone for the digitalization of the fund industry and underlines Cashlink’s role as a technological pioneer in the area of digitaler Vermögenswerte.

Learn more about the implementation of tokenized funds with Cashlink.

"We are very pleased about the extremely successful cooperation and the successful issuance of the crypto fund units. At the Digital Assets Office (DAO), we see ourselves as developers of innovative solutions to drive the digital transformation of the financial industry in Germany - always consistently focusing on the needs of our customers. We want to make the most of technological opportunities and offer real added value. The implementation of this project brings us a step closer to a fully digital financial market in Germany."

Shahrok Shedari

Deputy Director
of Bankhaus Metzler

The future of the fund industry

The tokenization of fund units opens up new opportunities – more efficient processes such as automated re-balancing, real-time data analysis and more direct customer relationships. Thanks to the Electronic Securities Act (eWpG) and the Ordinance on Crypto Fund Units (KryptoFAV), Germany already offers a legally secure framework. Investors have the choice between traditional and direct custody of their shares, which creates additional flexibility and allows asset managers to place products in the traditional financial world and in parallel on the web3 via hybrid distribution channels.

While the US market is already making progress, the German market now offers the opportunity to position itself as an innovation leader.

Would you like to take advantage of the opportunities offered by the digital fund world? Our experts will be happy to advise you!

Solutions

How Cashlink enables token-based Capital Markets

Cashlink provides a modular solution along the issuance- and post trade valuechain of token-based securities. As a regulated financial institution after the German Banking Act (KWG), Cashlink holds a license as a crypto securities registrar and qualifed crypto custodian.

Cashlink Connect Core

The issuance module enables issuers to issue regulatory–eWpG-compliant, token-based securities on the blockchain — with a proven and multiple times audited smart contract suite. Cashlink’s robust and scalable API based infrastructure, connects issuers with brokers and trading venues and is interoperable with stablecoins and upcoming ECB Digital Money solutions.

Cashlink Connect Banking

The settlement module enables custodian banks, brokers and exchanges to seamlessly settle token-based securities post-trade in full regulatory compliance in collective entry. Get access to all token-based securities registered by Cashlink and ensure secure, efficient, and transparent settlement on the blockchain without added complexity.

FAQ

Frequently Asked Questions about Token-based Funds

What is a token-based fund at Cashlink?

A token-based fund is an investment fund whose units are represented as digital tokens on a blockchain. These tokens reflect the rights and obligations associated with the fund units and are administered using smart contracts.

What advantages do token-based funds offer investors?

Direct market access without traditional intermediaries
Lower minimum investment amounts
Secure custody either in a personal wallet or via a custodian bank
A fully digital, on-chain subscription and settlement process

What are the benefits for asset managers?

Optimization of cost structures: Reduced costs through automated processes using smart contracts
New distribution opportunities: Access to digitally native investor groups via Web3 distribution channels
Efficient and faster transaction processing
Ability to distribute fund units digitally and tap into new sales channels

Are there practical examples?

Yes. Metzler Asset Management issued the first DLT-based UCITS fund units via Cashlink on the Polygon blockchain, with Cashlink serving as the crypto securities registrar.

How is regulatory compliance ensured?

Token-based funds are issued under the German eWpG. Investors may choose between traditional custody via a custodian bank or self-custody via a blockchain wallet — both models are fully regulated.

Trusted clients