Information about dematerialization in DLT
The CSD Prague offers issuers of book-entry securities the possibility to register their issues in the newly established securities register based on Distributed Ledger Technology (DLT). This register is fully maintained under Czech law and thus fulfils all the requirements, in particular under the ZPKT or the Corporations Act. This register is therefore also a central securities register.
What are the advantages of the new DLT Register? The benefits of DLT (Distributed Ledger Technology) for securities issuers include increased transparency, efficiency, security and innovation. DLT and digitalisation speeds up the entire dematerialization process, reduces the administrative burden in terms of providing paper documents and removes the operational risks involved.
Under the EU DLT Pilot Regulation, the DLT settlement and registration system is subject to specific rules and supervision. This reduces risk for users and ensures compliance with regulatory requirements. The CSD Prague has received a license for recordkeeping and settlement from the CNB with an opinion from the European regulator ESMA.
The process of dematerialization is analogous to the procedure in the central register kept on traditional technology, but the register allows especially shareholders direct access to the register via the CSD Prague, i.e. via a web or mobile application.
Detailed information on the dematerialization process. More information can be found here.