The three ways to connect a token to an asset, Swiss ledger-based securities, Germany's electronic securities, special purpose vehicles, and the documents that decide what a token really is.
Three ways to connect token and asset
- Direct: the token is itself the legally recognised form of the right, as with ledger-based securities.
- Indirect: the token represents a claim against an issuer or a special purpose vehicle (SPV) that owns the asset.
- Contractual: the token points to rights set out in off-chain documents.
Switzerland: ledger-based securities
- Since Switzerland's DLT law took effect in 2021, rights registered on a distributed ledger can be ledger-based securities.
- Transfer happens on the ledger itself, under the rules set in the registration agreement.
- It works for claims and membership rights such as bonds and shares.
Germany and the rest of the EU
- Germany's Electronic Securities Act (eWpG) of 2021 lets bonds and certain fund units be issued as crypto securities on a register.
- Corporate and securities law is still largely national in the EU.
- Whether a token can itself be a share or a bond depends on the country.
SPVs and bankruptcy remoteness
- Many real-world-asset tokens sit on an SPV that holds the asset and issues tokens or notes.
- Ask whether the SPV is protected if the sponsor goes bankrupt, and who can act for holders if things go wrong.
- A trustee or holder representative is often the difference between a claim and a recovery.
The documents that decide
- The terms and conditions or prospectus, the token or registration terms, and the custody agreement.
- Check that they all describe the token the same way.
- If the smart contract and the documents disagree, know which one prevails.
Key takeaways
- Direct, indirect or contractual: know which kind of token you hold.
- An SPV only protects holders if it is bankruptcy-remote and someone can act for them.
- The documents, not the code, define the right.
Sources
- Swiss Code of Obligations (ledger-based securities, Art. 973d ff.), Fedlex
- German Electronic Securities Act (eWpG)
Educational content only, not legal, tax or investment advice. Based on EU and Swiss rules as of September 2026. Check the official texts before relying on anything here.