The issuance of Pfandbriefe in Liechtenstein is governed by the new Pfandbrief Act, which was passed by the Liechtenstein Landtag in December 2024 and came into force in April 2025. The Liechtensteinisches Pfandbriefinstitut was established as a stock corporation in accordance with the respective regulations and is under the direct supervision of the Financial Market Authority Liechtenstein (FMA).

The Pfandbriefinstut is responsible for the joint issuance of Pfandbriefe by affiliated Liechtenstein banks. In addition, it manages the collateral pool centrally, ensures ongoing monitoring and auditing, and handles reporting for all stakeholders.