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ARTICLE · 20 AUGUST 2025

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MFSA Issues Position Paper On Tokenisation Of Fund Units

Papilio Services Limited
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The Malta Financial Services Authority (MFSA) has taken a significant step towards modernising Malta's investment fund industry with the publication of a detailed position paper on the tokenisation of fund units or shares...

MaltaFinance and Banking
Chris Armstrong
Chris Armstrong
Szabolcs Toth
Szabolcs Toth

The Malta Financial Services Authority (MFSA) has taken a significant step towards modernising Malta's investment fund industry with the publication of a detailed position paper on the tokenisation of fund units or shares of Collective Investment Schemes (CISs). Released on 12 June 2025, the paper sets out the regulator's views on the use of distributed ledger technology (DLT) to represent traditional fund units as digital tokens.

Paving the Way for Digital Innovation in Malta's Fund Sector

Tokenisation allows CIS units, including those in Alternative Investment Funds (AIFs), Professional Investor Funds (PIFs), and UCITS, to be digitised via blockchain-based smart contracts. This innovation facilitates more seamless transfers and has the potential to reduce administrative costs. By converting fund units into digital tokens, Malta aims to enhance operational efficiency, broaden investor accessibility, and maintain strong regulatory oversight.

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