The ERIR and Tokenized Asset Issuances in Spain

The Tokenized Asset Registration and Record-keeping Authority (ERIR) is responsible for ensuring the integrity and authenticity of blockchain records related to the issuance of financial assets, leveraging the immutability and traceability inherent in blockchain technology. The ERIR serves as a key element in guaranteeing the legality of operations while also facilitating the digital transformation of processes and certifications.

Legal Context

The introduction of blockchain-based financial instruments in Spain was incorporated into the Securities Market and Investment Services Act of March 2023 (Ley de los Mercados de Valores y de los Servicios de Inversión). This legislative initiative, which establishes the ERIR as a key compliance figure, is part of a broader set of measures aimed at regulating the integration of blockchain technology—harnessing its benefits while ensuring the necessary security guarantees at both the national and EU levels. At the European level, Regulation (EU) 2022/858, known as the Pilot Regime, provides the framework for creating and runing market infrastructures for the issuance and trading of tokenized financial assets.

Functions of the ERIR

● Ensuring the immutability of records and the integrity of financial asset issuances, verifying that the number of tokens representing assets and the amount allocated to each investor are accurate, preventing mismatches or transaction errors.
● Ensuring the correct identification of the issuer and of the investors acquiring tokenized assets through the issuer.
● Guaranteeing investor access to information related to their tokenized assets and transaction history.
● Managing the registration and execution of legal actions affecting tokenized assets, such as pledges, seizures, or transfers due to inheritance.
● Issuing certification documents.
● Managing corporate events with economic impact, such as the right to receive interest and dividend payments.
● Restoring financial instruments to their rightful owner in the event of theft or loss of private keys.

Who Can Perform the Functions of an ERIR?

● Brokerage firms, securities companies, and credit institutions authorized to provide custody services.
Central Securities Depositories (CSDs).
● Blockchain infrastructure operators authorized as a Settlement System or as a Trading and Settlement System under the Pilot Regime.

What Legal Certainty Does the ERIR Provide?

● Implementing investor protection measures and includes mechanisms to guarantee the exercise of rights and obligations related to the assets it validates, including legal acts not directly related to the initial issuance.
● Verifying information recorded on blockchain, identifying financial instrument holders and ensuring compliance with issuance conditions and applicable regulations.
● Conducting detailed transaction monitoring, facilitating audits and oversight of registered actions.

What Do I Need to Issue Assets with an ERIR?

Token City provides everything required to issue assets with the involvement of an ERIR. If you are looking for a platform to issue your tokenized assets or those of your clients, our Token City SaaS provides the following:

● A platform with an intuitive dashboard and user interface.
● Integration with Blockchain Service.
● Integration with ERIR.
● Integration with custody service.
● All necessary secondary integrations (payment processor, KYC, etc.).
● Consulting services to ensure compliance with issuance document requirements.

Alternatively, if you already have your own platform and simply need access to this functionality via API, you can integrate our Web3 Blockchain API.

What Should I Consider When Providing Services as an ERIR?

For entities that are either authorized or in the process of obtaining authorization as a Tokenized Asset Registration and Record-keeping Authority (ERIR), Token City provides a comprehensive ERIR platform to meet all operational requirements. Designed to facilitate transaction verification and tracking of corporate events with full compliance.