Investment & Digital Assets
How a capital market works, who sets the price in an order book, what a robo-advisor does with your money, and what changes when a bond or a fund unit is issued as a token. Fifteen answers, from the market itself to the custody of digital assets.
In Germany most of this trading runs through Frankfurt, where Deutsche Börse operates the Frankfurt Stock Exchange and Xetra.
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What are capital markets?
Capital markets are where companies and states raise long-term money with shares and bonds. How equity and debt markets work and what the EU plans for them. -
Primary market vs secondary market: what is the difference?
On the primary market an issuer sells new shares or bonds; on the secondary market investors trade them. How the two differ, with examples for stocks and bonds. -
What is a market maker?
A market maker quotes a buy and a sell price for a security and trades at both with its own money. Market making under MiFID II, on Xetra and in DeFi pools. -
What is an order book?
An order book lists all open buy and sell orders for a security, sorted by price. How matching by price/time priority works and what MiFIR makes venues publish. -
What is WealthTech?
WealthTech is software for wealth management and private investors, from robo-advice to portfolio tools. What it covers and which licenses apply in DACH. -
What is a robo-advisor?
A robo-advisor gives investment advice or manages a portfolio with an algorithm. How it works and which suitability rules ESMA applies to it under MiFID II. -
How is AI used in wealth management?
AI in wealth and asset management mostly helps staff draft and summarize, with a human in charge. Where it is used and what the EU AI Act requires from 2026. -
What are digital assets?
Digital assets are assets held and transferred as electronic records, from tokenized bonds to bitcoin. The MiCA definition, its exclusions and the DACH rules. -
What is tokenization of assets?
Tokenization of assets records an asset such as a bond or fund unit as a token on a programmable ledger. The steps, the custody question and DACH law. -
What are tokenized securities?
Tokenized securities are shares and bonds issued or recorded on a distributed ledger. How the German eWpG, the EU DLT Pilot Regime and Swiss law treat them. -
What are tokenized funds?
Tokenized funds are investment funds whose share register sits on a distributed ledger. Money market fund tokens, the German KryptoFAV and the risks explained. -
What are real world assets?
Real world assets (RWA) in crypto are tokens for assets that exist off the blockchain, such as bonds, fund shares, property or gold. Examples, rules and risks. -
Security tokens vs utility tokens: what is the difference?
Security tokens give rights like shares or bonds and fall under securities law; utility tokens give access to a service and fall under MiCA. The tests compared. -
What is crypto custody?
Crypto custody is the safekeeping of crypto-assets or their private keys for clients. MiCA Article 75 duties, custodial vs self custody, the German KWG license. -
What is a bitcoin ETF?
A bitcoin ETF is an exchange-traded product that holds bitcoin through a custodian. The SEC approval of January 2024, why UCITS hold none, and ETNs in Europe.
Where to start
New to the topic? Read what digital assets are first. Asset tokenization follows a token from its issue to its custody, and crypto custody explains who holds the keys once it is issued.