New US regulations are boosting institutional investor confidence in crypto assets, bringing decentralised finance (DeFi) strategies further into the spotlight. Luxembourg compartments offer an efficient and compliant gateway to these opportunities. “They provide a regulatory-compliant framework along with the transparency institutional investors require”, says Daniel Knoblach, Board Member at Super Global Services SA. “Even strict investment guidelines and regulatory requirements can be fully met within this structure.”
Decentralised financial strategies offer return potential beyond traditional capital markets. As a result, they are increasingly being adopted by foundations, pension funds and other institutional investors – often through instruments such as stablecoin-based lending. For those bound by strict internal or regulatory requirements, Luxembourg compartments provide an efficient and secure way to gain exposure to these markets while leveraging established financial structures and minimising operational risk.
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By combining innovative DeFi strategies with regulated onshore infrastructure, compartments benefit from the legal framework of the Luxembourg financial centre. This creates trust and delivers multiple advantages: valuation based on net asset value (NAV), institutional-grade reporting and annual audits conducted by independent auditors. “For many of our clients, this combination of transparency and regulatory certainty is essential for entering the blockchain space”, Knoblach points out.
There are also clear practical benefits. Investments are made via traditional securities such as bearer bonds, which can be held in bank custody and traded on regulated exchanges.
In addition, Luxembourg compartments allow investment strategies to be launched within just a few weeks, giving institutional investors the flexibility to act swiftly and seize emerging opportunities. “Given the ongoing uncertainty in the markets, speed is a key factor for many of our clients”, Knoblach adds.