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ARTICLE · 30 NOVEMBER 2018

Bermuda Funds - More Than A Token Offering?

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Bermuda continues to attract technology-based start-ups. With each new start-up comes the question of what types of digital transactions are permitted under our legal and regulatory regime, including the ability to offer tokenised funds.

BermudaFinance and Banking
Matthew Ebbs-Brewer
Matthew Ebbs-Brewer
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Bermuda continues to attract technology-based start-ups. With each new start-up comes the question of what types of digital transactions are permitted under our legal and regulatory regime, including the ability to offer tokenised funds.

By a tokenised fund, we are referring to a fund that represents investors’ interest in the fund through the issuance of digital assets. There are several reasons why interest is being generated in tokenised funds, which depend upon the type of token to be issued and the type of fund being launched.

The purpose of this article is not to provide an exhaustive explanation of why one may look to launch a tokenised fund but to explain whether, if one wishes to do so, whether Bermuda can facilitate such an offering and, if so desired, (e.g. to satisfy investor demand for a regulated product), bring such a fund within the scope of the Investment Funds Act 2006 (Act).

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