ERIRs in Spain: Their Role in Tokenization

ERIRs in Spain: their role in tokenization

Overview

What is an ERIR and why is it key to tokenizing financial instruments in Spain? In this MERGE Madrid panel, FinReg 360, Onyze, Ursus Capital and Minos Global explain this Spanish figure, its registry and custody function, the CNMV authorization process, which assets can be issued and the sector's challenges.

What you'll learn

• What an ERIR is: the entity responsible for recording and registration
• What functions it covers: issuance integrity, ownership and rights
• The licensing process: what it takes to be authorized as a securities firm
• Primary and secondary: the ERIR and the pilot regime
• What can be tokenized: tradable securities and investment funds
• Challenges: regulatory speed, omnibus accounts and money-laundering risks

Session summary

What an ERIR is: FinReg 360 explains that the ERIR (entity responsible for the administration, recording and registration of tokenized financial instruments) is a figure specific to Spain, created by the 2023 reform of the Securities Market Law, acting as registry and “custodian” in place of the central securities depository; its functions include guaranteeing the integrity of issuances, identifying holders, managing rights and corporate events, and restoring instruments in case of key loss.

The licensing process: Minos Global and Ursus Capital/Onyze explain that there is no “ERIR license” as such, but a securities firm license enabled for that function; the described timelines range from several months to a year and a half, with mutual learning with the regulator (still based on a draft royal decree).

What can be tokenized: according to the talk, the rules refer to tradable securities (shares, debt, bonds) and the CNMV has also confirmed investment funds; in the secondary market, the pilot regime limits trading to those instrument types.

What the market shows: a lot of real estate and crowdfunding platforms wanting to issue in tokenized form, plus tokenized funds (with interest even from outside Europe, such as Dubai).

Challenges: more regulatory agility is called for, the money-laundering risks of issuer self-placements without an investment firm are flagged, and it is recalled that tokenizing does not turn a bad project into a good one.

Watch the full talk

Watch the full recording on MERGE's YouTube channel, with FinReg 360, Onyze, Ursus Capital and Minos Global on ERIRs and tokenization.

FAQs

What is an ERIR?
According to the talk, the entity responsible for the administration, recording and registration of tokenized financial instruments, a Spanish figure acting as registry and custodian.

Is there an “ERIR license”?
According to the talk, no: you obtain a securities firm license also enabled for the ERIR function.

Which assets can be tokenized with an ERIR?
According to the talk, tradable securities (shares, debt, bonds) and also investment funds, as confirmed by the CNMV.

Is this investment or legal advice?
No. This content is informational and summarizes what was presented in the panel; it does not constitute investment or legal advice. Consult a professional for your specific situation.