An issuer is the company, the state or the bank that issues a security or a crypto asset and stands behind it. With a share that is the public company, with a German federal bond the federal
An issuer is the company, the state or the bank that issues a security or a crypto asset and stands behind it. With a share that is the public company, with a German federal bond the federal government, with a Bitcoin ETN the firm that brings the paper to market, and with a euro stablecoin a licensed bank or e-money institution. The documented position: European prospectus law calls an issuer any legal entity that issues securities, and the crypto regulation MiCA any person or firm that issues crypto assets. For your money, one question matters above all: do you hold a share in segregated assets, or merely a claim against the issuer? How we assess the risk of the individual products is set out further down as a marked assessment.
The term usually turns up in the small print: in the key information document of an ETF, in the terms of a certificate, in the whitepaper of a stablecoin. This guide explains who the issuer is in the case of a share, an ETF, an ETN, a certificate, a stablecoin and a stock token, what issuer risk means in a worked example with 10,000 euros, and how to find the issuer in a few minutes. How many parties can stand behind a single tokenised security is shown by our guide on stock tokens and who is behind them.
An issuer is the party that puts out a security or a token, meaning the entity that brings it into circulation and against which your rights are directed. That can be a public company, a state, a bank, a fund company or a special purpose vehicle set up for the task. The process itself is called an issuance.
The term appears in law in two places, depending on whether securities or crypto assets are at stake. For securities the EU Prospectus Regulation applies: an issuer there is a "legal entity which issues or proposes to issue securities". Whoever offers the papers to the public is called the offeror and may be a different party, such as a bank placing a bond with investors on behalf of a company. The German Securities Prospectus Act takes over both terms in section 2.
For crypto assets the Regulation on Markets in Crypto-Assets, MiCA for short, applies. Article 3(1) no. 10 calls an issuer any natural or legal person, or other undertaking, who issues crypto assets. No. 13 defines the offeror as the party that offers crypto assets to the public, which can be the issuer itself or a third party. Under Article 149, MiCA has applied since December 30, 2024, and Titles III and IV on stablecoins since June 30, 2024.
Who the issuer is follows from the type of product. More important than the name is the third column of the table: it shows what you hold in legal terms.
Product Issuer What you hold Example Share the public company itself a stake in the company with voting rights Deutsche Telekom AG for the T-share Bond state, federal state or company a claim to interest and repayment the Federal Republic of Germany for federal bonds ETF fund company (investment management company) a unit in segregated assets held separately fund companies such as iShares (BlackRock) or Xtrackers (DWS) ETN or crypto ETP issuing company, often a special purpose vehicle a debt instrument, frequently with deposited coins as collateral 21Shares AG, Zurich, for the 21Shares Bitcoin ETP Certificate usually a bank a debt instrument, as a rule without collateral Lehman Brothers Treasury Co. B.V. until the insolvency of 2008 E-money token (stablecoin) bank or e-money institution a claim to redemption at par Circle Internet Financial Europe SAS for USDC and EURC in the EU Stock token platform or special purpose vehicle a claim on the market value, usually without shareholder rights Backed Assets (JE) Limited for the xStocksWith a share and a bond the matter is straightforward: you either hold a stake in the company or a claim to repayment. With an ETF the fund company is indeed the issuer, but the money invested does not belong to it. The fund's securities sit with a depositary and must be kept separate from the company's own assets under section 92 KAGB. With an ETN and a certificate it is the other way round: the money belongs to the issuer and you hold a claim against it. How both routes differ from buying a coin directly is shown by our comparison of Bitcoin certificate, ETN or coin.
With an ETN and a certificate you hold a claim against the issuer, not segregated assets. Symbolic image, AI-generated.
Issuer risk means that the party putting out the paper can no longer meet its promises and, in the worst case, becomes insolvent. How much you lose then depends less on the price of the underlying than on whether your money is segregated from the issuer's assets.
With an ETF it is segregated. Under section 99(3) KAGB, the segregated assets do not form part of the fund company's insolvency estate. If the company fails, its right to manage the fund lapses. The depositary takes over and winds the fund up, or transfers it to another fund company with BaFin's approval (section 100 KAGB).
With an ETN and a certificate nothing is segregated. You are a creditor of the issuer, much like a supplier with an unpaid invoice. How that can end is shown by the Lehman Brothers case: the Dutch subsidiary Lehman Brothers Treasury Co. B.V. had issued certificates that were sold to retail customers in Germany through savings banks as well, and that were meant to repay the amount invested even in the least favourable case. With the insolvency of the issuer and the guarantor in September 2008, they became largely worthless according to the German Federal Court of Justice. The capital protection held only as long as the issuer existed.
Two layers of protection that savers like to rely on do not apply to such papers. Under section 8 of the German Deposit Guarantee Act, the statutory deposit guarantee covers up to 100,000 euros per customer and bank, but only deposits such as instant-access savings. Shares, certificates and fund units do not fall under it, according to BaFin. And if a bank gets into difficulty, the resolution authority can write down its debt instruments, index certificates among them, or convert them into shares before insolvency proceedings even begin. That procedure is called a bail-in: shareholders bear the loss first, creditors after them.
Suppose you have invested 10,000 euros and on the same day the party putting out the product files for insolvency. The table shows what is left depending on the product. The costs and recovery rates in the fourth column are assumptions for this calculation, not a forecast; real insolvency recovery rates vary widely and are often only settled after years.
Product Your position What happens in the insolvency Assumption What is left of 10,000 euros Instant-access savings at the bank depositor statutory deposit guarantee up to 100,000 euros full coverage 10,000 euros ETF unit in segregated assets depositary winds the fund up or transfers it price unchanged, 0.5 percent wind-up costs 9,950 euros E-money token claim to redemption at par redemption out of the reserves under the redemption plan reserves complete, 1 percent costs 9,900 euros Crypto ETP with deposited coins secured creditor the security trustee realises the deposited coins realisation yields 95 percent 9,500 euros ETN or certificate without collateral ordinary creditor filing a claim in the insolvency, payment of the recovery rate recovery rate 10 percent 1,000 euros Share in the issuer owner shareholders come after all creditors no residual assets 0 eurosThe range runs from 10,000 to 0 euros, even though the same sum was invested in every case. The difference comes solely from the position relative to the issuer. Time is added to that: a wind-up or a realisation can take months, and with a crypto ETP the value of the collateral fluctuates with the price during that period.
Our assessment: the biggest risk lies in the mix-up, not in the individual product. ETFs and ETNs run through the same securities account, carry similar tickers and are traded on the same exchange, yet in legal terms they sit at opposite ends of the table. For crypto in a securities account the ETN is the normal case: our count of September 12, 2026 found 122 crypto ETNs from 16 provider families on Xetra, with more on that in our guide on crypto ETNs in your securities account. Deposited coins lower the risk considerably, but they do not replace a look at the issuer. For the 21Shares Bitcoin ETP, the product page names a security trustee and two custodians alongside 21Shares AG, so four parties instead of one. Knowing that, you can use crypto ETPs deliberately. Mistake an ETN for a fund, and you are carrying a risk you never chose.
Behind an e-money token stands, under MiCA, a bank or an e-money institution that has to redeem at par. Symbolic image, AI-generated.
With a euro or dollar stablecoin, the issuer is the firm that puts the tokens out against money and takes them back. In the EU it has to be authorised as a credit institution or an e-money institution under Article 48 MiCA and publish a whitepaper. Against it you hold a claim to redemption under Article 49, at any time, at par and free of charge.
MiCA calls such tokens e-money tokens because they are meant to track the value of exactly one official currency. Tokens that reference another value or a basket are called asset-referenced tokens and need their own authorisation under Article 16. The issuer has to hold at least 30 percent of the countervalue of e-money tokens in separate accounts at credit institutions, and the rest in secure, highly liquid investments in the same currency (Article 54). It may not pay interest on the tokens (Article 50).
Which firms are authorised is set out in the register of the European securities regulator ESMA. As at October 16, 2026 it lists 25 issuers of e-money tokens with 50 whitepaper entries from 14 countries of the European Economic Area, most of them from France (6) and from Luxembourg and the Netherlands (3 each). In mid-August there were 23, as our count of the MiCA register shows. From Germany there is a single issuer, AllUnity GmbH. USDC and EURC are issued in the EU by Circle Internet Financial Europe SAS, an e-money institution based in France. For asset-referenced tokens the register holds not a single entry so far. Where you can trade such tokens is shown by our comparison of crypto exchanges.
Not every crypto asset has an issuer. Bitcoin comes into being through mining under fixed rules in the protocol; nobody puts it out and nobody has to take it back. MiCA draws the consequence in recital 22: crypto assets without an identifiable issuer do not fall under Titles II to IV, and therefore not under the rules on whitepapers and stablecoin issuers. Exchanges and custodians that trade or hold Bitcoin for customers still need authorisation.
With a stablecoin, by contrast, a missing issuer is a problem. Polkadot launched dotUSD, a dollar token without an issuer, on October 8, 2026; with no issuer there is also nobody against whom a redemption claim would exist, as our report on Polkadot launching dotUSD without an issuer shows.
With stock tokens the case is different again: they do have an issuer, but they do not fall under MiCA, because financial instruments are excluded under Article 2(4). Prospectus law applies to them instead. The xStocks, for example, are issued by Backed Assets (JE) Limited, a company from Jersey; the Dutch supervisor AFM lists a prospectus notification of May 8, 2026 for the issuance of tokenised securities, with the Liechtenstein financial market authority as the competent body. What you own with such tokens and what you do not is set out in our guide on tokenised stocks and why they do not make you a shareholder.
Buying a security or a token usually involves several parties, which in everyday use get mixed up easily. Only against the issuer is your claim to repayment, dividend or redemption directed. Using the 21Shares Bitcoin ETP as an example, the split looks like this:
Role What it does Your claim At the 21Shares Bitcoin ETP Issuer puts the paper out and is liable for it repayment of the countervalue 21Shares AG, Zurich Security trustee holds the collateral for the benefit of investors realisation if the issuer defaults The Law Debenture Trust Corporation PLC Custodian of the coins safekeeps the deposited Bitcoin as a rule none directly, the coins serve as collateral Coinbase Custody Trust Company and Zodia Custody Exchange brings buyers and sellers together proper execution of your order Xetra, for example Broker and custodian bank accepts your order and holds the paper delivery of your securities your bank or your online brokerThe difference counts when it matters. If your custodian bank fails, you can demand delivery of your securities according to BaFin, because they belong to you and not to the bank. If the issuer fails, however, that right helps you little: you get the paper, but it is worth no more than the claim behind it.
In crypto the same separation applies. Anyone who safekeeps crypto assets for customers in the EU or operates a trading platform needs authorisation as a crypto-asset service provider under MiCA; banks notify the service to their supervisor. As at October 19, 2026 ESMA's interim register lists exactly 374 such firms, 106 of them with Germany as the home country. Which platforms hold an EU authorisation is shown by our comparison of regulated crypto exchanges. Where you buy crypto ETPs and real coins, and what the trading costs, is set out in our crypto broker comparison.
You can find the issuer in a few minutes once you know where it is stated. Four places are enough for almost any product:
With crypto ETNs it is also worth looking at the final terms, because the brand name and the legal entity often diverge. How to find the actual debtor there is shown by our guide on crypto ETNs and who your debtor is.
An issuer puts out and is liable. For investors one simple check follows from that before every purchase: do you hold a unit in segregated assets, as with an ETF, or a claim, as with an ETN, a certificate and a stablecoin? With claims, what decides the outcome is the issuer's solvency and the question of whether collateral has been deposited. The deposit guarantee of up to 100,000 euros helps with none of these papers. Buying crypto through a securities account therefore means comparing not only the price and the fee, but also the name at the very top of the key information document.
