Feetham says tokenised fund share Bill will strengthen Rock's position in digital finance 

The Government has published legislation to create a legal framework allowing tokenised shares to be issued within protected cell companies authorised as experienced investor funds, in a move aimed at strengthening Gibraltar’s position in regulated digital finance.  

The Protected Cell Companies (Amendment) Bill 2026 would enable the use of distributed ledger technology in the issuance, registration and transfer of shares, while providing legal certainty for fund structures using the technology within an established regulatory framework.  

Under the proposed amendments, protected cell companies operating as experienced investor funds and authorised by the Gibraltar Financial Services Commission would be able to issue shares in tokenised form. 

These share tokens would be legally recognised as equivalent to traditional share certificates under the Companies Act 2014, with investors retaining the same rights and protections.  

The Bill also introduces DLT-based share registers, allowing companies to maintain ownership records on distributed ledger systems. 

The Government said the change is intended to enhance transparency, improve operational efficiency and reduce administrative burdens for fund managers and service providers.  

“This legislation reinforces Gibraltar’s position as a leading jurisdiction for innovative and well-regulated financial services,” said Nigel Feetham, the Minister for Financial Services. 

“By integrating distributed ledger technology into our existing legal framework for funds, we are enabling the next generation of financial infrastructure.” 

“I first set out this ambition at an international conference in Hong Kong in February, and I am pleased that, within just two months, we have been able to deliver on that commitment.” 

“The Government wishes to formally acknowledge Nathan Catania for his contribution to the development of the proposal that led to this Bill, and Targ Patience for his engagement on the draft legislation, both acting on behalf of the industry.”  

The legislation would require funds to obtain prior approval from the Gibraltar Financial Services Commission before tokenised shares could be issued. 

It also sets out requirements relating to investor eligibility, cybersecurity, custody arrangements and risk disclosure.  

In addition, the Bill provides legal recognition for the use of smart contracts and cryptographic signatures in the transfer of shares, giving digital processes full legal effect under Gibraltar law.  

The Gibraltar Government said the Bill builds on Gibraltar’s existing regulatory framework for DLT providers and has been shaped through engagement with the Financial Services Commission, local industry and the Opposition. It will now proceed through the legislative process.  

Mr Feetham, together with his team and Mr Catania, will shortly travel to Consensus Miami to promote the proposed framework and meet industry leaders.  

Mr Feetham will also hold meetings with prediction market investors.