5 years of hard work pays off as the tokenization wave begins

In October, we celebrated our 5th birthday in Luxembourg. Since our inception, we have progressed from a startup to a global leading tokenization solution provider, recognized and trusted by institutions. It was important to us to acknowledge the great work the team has done, so we took three days to meet and celebrate in person with teammates and partners. Let me share with you how we started and where we are heading to.

? Born out of the ICO boom, with compliance and real world assets in mind

2017 was the first crypto boom. It demonstrated that public blockchain had the potential to change the financial world. We had the vision to bring real world assets and financial securities to this shared IT infrastructure to make finance more transparent, real-time, and accessible. Tokeny was founded the same year and started to propose solutions for projects raising funds on blockchain.

We successfully provided software tools to onboard thousands of investors within minutes and to automatically reconcile their payments on the blockchain in order to mint their utility tokens. This demonstrated the power of smart contracts and that a good UX for investors was possible. In 2019, we’ve secured fundraising from Euronext, the largest stock exchange group in Europe, allowing us to develop a complete set of tools for financial actors to easily adopt the technology.

⛓ Creating the open-source security token standard ERC3643

Tokenization relies on smart contracts to represent assets on blockchain. Upon reviewing all existing smart contract standards, we realized that no existing token standard was ensuring compliance properly for tokenized securities. Compliance validations were relying only on wallet addresses or on the software database. In addition, key features for agents were missing (recovery of assets, batch operations, etc.).

To this end, we created the open-source security token standard, ERC3643, using an identity-based compliance approach to ensure on-chain compliance. Also, more than 120 functions of control were added. Now, ERC3643 is becoming the market standard for digital securities as it is adopted by large financial institutions and governments.

? 5 years of investment to build solutions covering the whole value chain

ERC3643 is open-source, anyone can freely use it. However, managing smart contracts can be very cumbersome. Issuers and their agents need a robust operating platform to manage their tokens and investors in a secure and efficient way.

The platform needs to scan the blockchain in real time, reconcile blockchain and investors’ data, and allow smooth blockchain-based operations via user-friendly interfaces. In addition, it needs to include more sophisticated functionality such as token recovery, permission delegation, cross-chain capability, and more. After years of development and optimizations, we now offer our customers with complete, compliant and white-label solutions, covering the entire tokenization value chain.

Our hard work is paying off as we are signing large institutions and riding the wave of tokenization. Institutions are realizing that building a platform takes time, is costly, risky, and could prevent them from accessing an interoperable ecosystem of applications and providers. The time to market is the main element to consider for institutions, and our suite of tools allows them to quickly adopt the proven standard to offer blockchain-based services for their investors.

? Growing the ecosystem and preparing for institutional DeFi

Asset issuers and service providers (custodians, KYC providers, data oracles, liquidity providers, DeFi protocols, etc.) are now joining the ERC3643 ecosystem. Issuers immediately access hundreds of service providers, while service providers can offer services to any issuer in the ecosystem. We act as an ecosystem facilitator, ensuring that the technology stack remains interoperable and compatible with all major players of the market.

As the ecosystem grows, all the elements needed for institutional DeFi are coming together: higher quality of tokenized assets, valuation oracles, compliant DeFi protocols, DINO distribution networks for liquidity providers, etc. Our team is ready to assist any players in accessing institutional DeFi, and we expect it to be the next big thing in the tokenization industry.

Thank you for being part of our journey, stay tuned for more exciting updates.

Migration to Digital Assets Accelerates

HSBC releases tokenisation platform for digital bonds

HSBC will launch its new proprietary tokenisation platform HSBC Orion, allowing financial institutions and corporates to issue digital bonds based on distributed ledger technology (DLT).

Securities Finance Times

Read More

JP Morgan, DBS, SBI Digital Asset complete DeFi tokenization trials on public blockchain

JP Morgan Onyx, DBS and SBI Digital Asset executed trials for foreign exchange transactions and government bond trades using modified public lending protocol Aave and the decentralized exchange (DEX) Uniswap on the Polygon blockchain.

Ledger Insights

Read More

Security tokens can ‘revolutionise’ how Hong Kong, Greater Bay Area property developers fund mega projects, says report

STOs could “revolutionise” the way developers raise capital to fund their projects, providing a shot in the arm for the property markets of Hong Kong and the Greater Bay Area, according to a report.

South China Morning Post

Read More

Santander Proposes Project to Tokenize and Trade Properties With the Brazilian CBDC

The proposal, part of the LIFT challenge, would be focused on simplifying the sale of real estate properties and cars for the Brazilian population.

Bitcoin.com

Read More

Swiss, Singapore, French central banks to try DeFi for FX in cross border CBDC

Today, the BIS Innovation Hub announced Project Mariana, a new research initiative exploring DeFi. It will use automated market makers (AMM) for foreign exchange as part of cross border payment trials using wholesale central bank digital currency (CBDC).

Ledger Insights

Read More

New developments to open up the Hong Kong virtual asset industry

Contrary to the market’s expectation that it would maintain tight regulation of the virtual asset industry, the Hong Kong government announced significant initiatives to open up the virtual asset industry to provide Hong Kong with a competitive edge as a virtual asset hub in the Asia region.

Lexology

Read More

BIS, UN, Hong Kong Monetary Authority conclude tokenized green bonds trial

Coin Telegraph

Read More