Design Objective

DO-5 - Ensure regulatory compliance (with MiCAR and eWpG)

The prototype must fully comply with the legal framework in Germany, covering both the token and specific regulatory requirements such as KYC and AML checks, forced transfer under judicial enforcement, and inclusion of a crypto securities registry (CSR).

Overview

Producer metadata and the represented concept document.

Concept identity

design-knowledge/bond-markets-tokenization-tac-do5

Open concept record

Producer label: DO-5
Source paper: Designing the future of bond markets: Reducing transaction costs through tokenization
Timestamp: 2026-08-05T00:00:00+00:00
Bundle path: design-knowledge/bond-markets-tokenization-tac-do5.md

bond-markets-tokenization-tacdesign-objectivefinance-bondssecuritiestokenizationtransaction-costs

Design objective DO-5: Ensure regulatory compliance (with MiCAR and eWpG)

The prototype must fully comply with the legal framework in Germany. This covers both the token and specific regulatory requirements such as Know-Your-Customer (KYC) and Anti-Money Laundering (AML) checks of the investors. Subject to judicial enforcement, it must also be possible to transfer tokens even if the token holder refuses or cannot transfer for unspecified reasons. Through the newly introduced German eWpG, crypto security registers enable the issuance of bearer bonds utterly detached from physical, paper-based securities certificates. The prototype should, thus, include a crypto securities registry (CSR).

Source paper

This design objective is proposed by Designing the future of bond markets: Reducing transaction costs through tokenization (David Cisar, Benjamin Schellinger, Jens-Christian Stoetzer, Vincent Gramlich, Tobias Guggenberger, Nils Urbach, Florian Lennart Weiss, 2025).

Addresses

Meta-requirement MR-7: Reduce room for opportunistic behavior

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Concepts connected by incoming or outgoing native Markdown links.

1 Design Principle

design-knowledge/bond-markets-tokenization-tac-dp5

DP5 - Implement smart-contract-based crypto securities registers

Implement a crypto securities register (CSR) within a smart contract for digitally tokenized bearer bonds, disrupting the traditional custodian chain and accelerating settlement.

bond-markets-tokenization-tacdesign-principlefinance-bondssecurities+2

1 Meta Requirement

design-knowledge/bond-markets-tokenization-tac-mr7

MR-7 - Reduce room for opportunistic behavior

Information asymmetries can be found in many aspects of the bond token market; potential issuers often lack financial and credit history, counterparty and settlement risks exist, and processes are not transparent, hindering traceability and auditability. The prototype shall reduce information asymmetries as much as possible.

bond-markets-tokenization-tacfinance-bondsmeta-requirementsecurities+2

1 Paper

papers/bond-markets-tokenization-tac

Designing the future of bond markets: Reducing transaction costs through tokenization

Using a transaction-cost-theory lens, the paper identifies seven meta-requirements and derives five design objectives for an Ethereum-based bond prototype, from which it formulates five design principles for blockchain-based bond markets: apply modular design, exploit multi-token standards, automate on-chain payouts, restrict forced-transfer functions to regulators, and implement smart-contract-based crypto securities registers.

blockchainbond-markets-tokenization-tacdesign-science-researchfinance-bonds+3

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4 of 4 concepts · 8 directed relationships

Concept types

Design ObjectiveSeed

Ensure regulatory compliance (with MiCAR and eWpG)

Concept identity

Concept ID: design-knowledge/bond-markets-tokenization-tac-do5
Producer label: DO-5
Native type: design-objective

Description

DOI

https://doi.org/10.1007/s12525-025-00753-3

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{
  "type": "design-objective",
  "title": "DO-5 - Ensure regulatory compliance (with MiCAR and eWpG)",
  "description": "The prototype must fully comply with the legal framework in Germany, covering both the token and specific regulatory requirements such as KYC and AML checks, forced transfer under judicial enforcement, and inclusion of a crypto securities registry (CSR).",
  "resource": "https://doi.org/10.1007/s12525-025-00753-3",
  "source_paper": "Designing the future of bond markets: Reducing transaction costs through tokenization",
  "label": "DO-5",
  "tags": [
    "bond-markets-tokenization-tac",
    "design-objective",
    "finance-bonds",
    "tokenization",
    "transaction-costs",
    "securities"
  ]
}

Design Objective

DO-5 - Ensure regulatory compliance (with MiCAR and eWpG)

Overview

Producer metadata and the represented concept document.

Concept identity

design-knowledge/bond-markets-tokenization-tac-do5

Open concept record

Producer label: DO-5
Source paper: Designing the future of bond markets: Reducing transaction costs through tokenization
Timestamp: 2026-08-05T00:00:00+00:00
Bundle path: design-knowledge/bond-markets-tokenization-tac-do5.md

bond-markets-tokenization-tacdesign-objectivefinance-bondssecuritiestokenizationtransaction-costs

Design objective DO-5: Ensure regulatory compliance (with MiCAR and eWpG)

Source paper

Addresses

Meta-requirement MR-7: Reduce room for opportunistic behavior

Linked concepts

Concepts connected by incoming or outgoing native Markdown links.

1 Design Principle

design-knowledge/bond-markets-tokenization-tac-dp5

DP5 - Implement smart-contract-based crypto securities registers

Implement a crypto securities register (CSR) within a smart contract for digitally tokenized bearer bonds, disrupting the traditional custodian chain and accelerating settlement.

bond-markets-tokenization-tacdesign-principlefinance-bondssecurities+2

Designing the future of bond markets: Reducing transaction costs through tokenization

blockchainbond-markets-tokenization-tacdesign-science-researchfinance-bonds+3

Relationships

Directed links from Markdown. Heading context is displayed as derived metadata, not as a formal OKF predicate.

Outgoing links

Incoming backlinks

Local graph

One-hop by default, with an optional bounded two-hop view. Nodes are concept files and arrows are Markdown links.

Knowledge graph

4 of 4 concepts · 8 directed relationships

Concept types

Design ObjectiveSeed

Ensure regulatory compliance (with MiCAR and eWpG)

Concept identity

Concept ID: design-knowledge/bond-markets-tokenization-tac-do5
Producer label: DO-5
Native type: design-objective

Description

DOI

https://doi.org/10.1007/s12525-025-00753-3

Raw metadata

The complete producer frontmatter, serialized without server paths or runtime data.

Show producer frontmatter

{
  "type": "design-objective",
  "title": "DO-5 - Ensure regulatory compliance (with MiCAR and eWpG)",
  "description": "The prototype must fully comply with the legal framework in Germany, covering both the token and specific regulatory requirements such as KYC and AML checks, forced transfer under judicial enforcement, and inclusion of a crypto securities registry (CSR).",
  "resource": "https://doi.org/10.1007/s12525-025-00753-3",
  "source_paper": "Designing the future of bond markets: Reducing transaction costs through tokenization",
  "label": "DO-5",
  "tags": [
    "bond-markets-tokenization-tac",
    "design-objective",
    "finance-bonds",
    "tokenization",
    "transaction-costs",
    "securities"
  ]
}