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The recent adoption of Blockchain IV Law by the Luxembourg Parliament marks a pivotal moment for the financial sector, particularly for fund managers looking to embrace the future of on-chain finance. This landmark legislation introduces the role of the Control Agent, a new concept that revolutionizes how securities are issued, held, and reconciled on the blockchain. By removing the need for traditional intermediaries and empowering entities to manage securities directly on the blockchain, this law amendment offers unparalleled opportunities for efficiency, transparency, and innovation.
At Fume, we believe this transformative development aligns perfectly with our protocol, which provides fund managers with the tools they need to operate their on-chain funds seamlessly. Here’s how the new Control Agent model is set to redefine fund management—and how Fume can help you leverage this framework to create an on-chain fund in Luxembourg.
Under Blockchain IV, the role of a Control Agent is introduced as an alternative to the traditional reliance on central account keepers and settlement organizations, such as transfer agents or clearing systems. Control Agents play a critical role in managing securities issuance accounts on the blockchain, ensuring custody tracking, and reconciling records. Crucially, this model eliminates the need for the conventional two-tier holding chain between central and secondary account keepers, simplifying the operational structure.
Key responsibilities of a Control Agent include:
This shift is poised to streamline processes, reduce transaction costs, and significantly accelerate settlement times for funds operating on-chain.
At Fume, our protocol is designed to empower fund managers to take full control of their on-chain operations. By leveraging Blockchain IV’s Control Agent framework, fund managers can use our platform to act as their own Control Agents, avoiding reliance on third-party intermediaries and maximizing operational efficiency.
Our protocol provides the necessary infrastructure for:
By taking on the role of a Control Agent through Fume, fund managers can establish direct control over their operations while benefiting from Blockchain IV’s enhanced legal certainty and the operational efficiencies offered by blockchain technology.
Luxembourg has long been a leader in financial innovation and remains one of the most attractive jurisdictions for fund managers. With the implementation of Blockchain IV, the country is setting a new standard for blockchain-enabled finance, offering fund managers the tools to create more agile and transparent investment vehicles.
By establishing an on-chain fund in Luxembourg, you’ll benefit from:
The future of fund management is on-chain, and Luxembourg is leading the way with Blockchain IV. At Fume, we’re uniquely positioned to help fund managers navigate this exciting new landscape. Whether you’re exploring the idea of launching an on-chain fund or looking to optimise an existing one, our protocol offers everything you need to operate as a Control Agent and take full advantage of the latest regulatory innovations.
Get in touch with us today to learn more about how we can help you create a compliant, efficient, and forward-thinking on-chain fund in Luxembourg. The opportunities are endless—don’t get left behind.
Contact us now to explore the next generation of fund management in Luxembourg.
Dive into the future of fund management with Fume. Explore our on-chain administration tool designed to streamline your processes and reduce overhead costs.
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