Chartered Investment and Smart Wealth launch first tokenized index tracker under German electronic securities act
27. June 2023 | Medienmitteilung

Chartered Investment and Smart Wealth launch first tokenized index tracker under German electronic securities act

German fintech and securitization boutique Chartered Investment has teamed up with the Zurich based FINMA regulated asset manager Smart Wealth, a global pioneer and leading player in AI based asset management, to launch the first actively managed multi asset portfolio on the Avalanche Blockchain.

This new tokenized security offering, called InstiToken, uses the proprietary technology of e-Sec, a crypto security registrar founded by Chartered Investment, to offer investors the possibility to hold traditional finance (TradFi) managed accounts in their wallet, without a bank account and the need to pay custody fees.

Both Chartered Investment and e-Sec are regulated entities under German BaFin. The partnership is committed to providing investors with a reliable, transparent and secure investment solution, while continuously seeking to innovate and stay ahead of the curve in the rapidly changing investment landscape.

»Chartered Investment's and Smart Wealth primary objective is to create an investment product, that is operationally future-proof, » says Daniel Maier, CEO of Chartered Investment. «This means that the assets must remain accessible to investors or their heirs, even after a considerable amount of time has passed, if an electronic device is no longer functional or a seed-phrase – which is the wallet access key – is lost. » Moreover, the access to the investment product must also meet the same anti-money laundering standards as other financial intermediaries.

The proprietary platform ecosystem developed by Chartered Investment is crucial to the success of this offering. The underlying Index is calculated by LIXX Innovations, a registered benchmark index administrator, and replicated on the managed account. The account is securitized by Chartered Opus, the largest Luxembourg SPV solutions provider, and issued as an (ERC20 based) Token by e-Sec. The security has a Luxembourg ISIN, full legal documentation, and the issuer undergoes an annual audit by EY. Furthermore, e-SEC provides investors with a means of addressing token-related issues, including cases of lost access to the wallet.

The InstiToken is considered a bearer bond according to German law and created on the Avalanche blockchain by a regulated organization. While this may not perfectly fit into the concept of decentralized finance (DeFi), participants see it as a practical way to make blockchain-based securities accessible to more people and address past concerns about supervision and accountability in the industry.

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