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QUESTIONS & ANSWERS

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  • DDW Deutsche Digitale Wertpapiere GmbH is a Hamburg-based FinTech within the Brightpoint Group that offers issuing solutions for digital securities as tokenized bonds as a service. This is done using innovative blockchain technology.

  • DDW was established with the aim of democratizing the asset class, striving to open up investment opportunities that were previously only available to a select few, making them accessible to everyone.

  • The eWpG, a law enacted in June 2021, governs electronic securities trading in Germany and aims to safeguard investor interests. A reform introduced by this law is the acknowledgment of securities in digital form, eliminating the requirement for physical certificates. These digital securities may be recorded on platforms such as blockchain. The eWpG establishes the regulatory framework within which DDW's services operate.

  • A tokenized bond is a financial instrument where bonds are divided into security tokens, each representing a bond. The creation and management of these tokens occur on the blockchain, a decentralized digital ledger that records information in blocks linked through cryptography. This technology ensures secure, transparent, and immutable recording of transactions and data.

  • Tokenizing debt securities into security tokens presents several advantages for both issuers like companies and funds, and investors. By breaking down notes into smaller denominations, this method facilitates the division of note amounts. This makes previously exclusive investment opportunities accessible to investors with smaller amounts of capital, thus broadening the potential investor base. Companies and funds gain the flexibility to adjust investment sizes and attract a more diverse group of investors. Smaller companies, which often struggle to secure external funding, can leverage tokenized debt securities to reach a wider audience and more easily acquire debt capital.

    Additionally, tokenization leads to heightened efficiency. The automation of administrative tasks results in significant time and cost reductions. Both the initial setup time and ongoing costs are drastically lowered.

  • An SPV (Special Purpose Vehicle) is a legally independent company that is established for a specific and limited purpose. The main functions of the SPV include risk separation and limitation of liability through limited assets and financing of projects by issuing bonds. In the case of DDW, the SPV invests in its own name and for its own account. in its own name and for its own account.

  • A securities prospectus is always required for public offerings, unless at least one of the following exceptions applies:

    Increase options:

    There is the possibility of options to increase the investment. For example, the starting point can be an offer that falls under a prospectus exemption and the investment can be increased as the project progresses. Both private offers and later public offers are an option. Capital calls are also possible in the traditional way

  • A public offering can be excluded if:

    1. the offer is addressed exclusively to qualified investors

    2. a maximum of 149 potential investors are addressed in each EU member state

    3. the minimum subscription amount is 100,000 euros

  • A WIS, like a securities prospectus, is used to provide information in relation to public offerings of between €1 million and €8 million. However, it is significantly shorter (usually 3 pages max.) than the securities prospectus, but must contain all relevant information and be approved by BaFin.

  • Should DDW or the software provider Cashlink become insolvent or be separated in any other way, this will not affect the existence or format of the security tokens that have already been created. The tokens will remain unchanged and intact. The only change is that they will be transferred to a different ledger or custodian to guarantee their security and integrity. This ensures that investors and token holders continue to always have access to their assets, even in unforeseen circumstances.

  • DDW Deutsche Digitale Wertpapiere GmbH is a Hamburg-based FinTech within the Brightpoint Group that offers issuing solutions for digital securities as tokenized bonds as a service. This is done using innovative blockchain technology.

  • DDW was established with the aim of democratizing the asset class, striving to open up investment opportunities that were previously only available to a select few, making them accessible to everyone.

  • The eWpG, a law enacted in June 2021, governs electronic securities trading in Germany and aims to safeguard investor interests. A reform introduced by this law is the acknowledgment of securities in digital form, eliminating the requirement for physical certificates. These digital securities may be recorded on platforms such as blockchain. The eWpG establishes the regulatory framework within which DDW's services operate.

  • A tokenized bond is a financial instrument where bonds are divided into security tokens, each representing a bond. The creation and management of these tokens occur on the blockchain, a decentralized digital ledger that records information in blocks linked through cryptography. This technology ensures secure, transparent, and immutable recording of transactions and data.

  • Tokenizing debt securities into security tokens presents several advantages for both issuers like companies and funds, and investors. By breaking down notes into smaller denominations, this method facilitates the division of note amounts. This makes previously exclusive investment opportunities accessible to investors with smaller amounts of capital, thus broadening the potential investor base. Companies and funds gain the flexibility to adjust investment sizes and attract a more diverse group of investors. Smaller companies, which often struggle to secure external funding, can leverage tokenized debt securities to reach a wider audience and more easily acquire debt capital.

    Additionally, tokenization leads to heightened efficiency. The automation of administrative tasks results in significant time and cost reductions. Both the initial setup time and ongoing costs are drastically lowered.

  • An SPV (Special Purpose Vehicle) is a legally independent company that is established for a specific and limited purpose. The main functions of the SPV include risk separation and limitation of liability through limited assets and financing of projects by issuing bonds. In the case of DDW, the SPV invests in its own name and for its own account. in its own name and for its own account.

  • A securities prospectus is always required for public offerings, unless at least one of the following exceptions applies:

    Increase options:

    There is the possibility of options to increase the investment. For example, the starting point can be an offer that falls under a prospectus exemption and the investment can be increased as the project progresses. Both private offers and later public offers are an option. Capital calls are also possible in the traditional way

  • A public offering can be excluded if:

    1. the offer is addressed exclusively to qualified investors

    2. a maximum of 149 potential investors are addressed in each EU member state

    3. the minimum subscription amount is 100,000 euros

  • A WIS, like a securities prospectus, is used to provide information in relation to public offerings of between €1 million and €8 million. However, it is significantly shorter (usually 3 pages max.) than the securities prospectus, but must contain all relevant information and be approved by BaFin.

  • Should DDW or the software provider Cashlink become insolvent or be separated in any other way, this will not affect the existence or format of the security tokens that have already been created. The tokens will remain unchanged and intact. The only change is that they will be transferred to a different ledger or custodian to guarantee their security and integrity. This ensures that investors and token holders continue to always have access to their assets, even in unforeseen circumstances.

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