The partnership provides financial institutions with a cutting-edge tokenization platform handling ERC3643-based tokenized securities atop an integrated non-custodial wallet infrastructure to abstract away blockchain complexity while ensuring compliance and security.
Luxembourg – Tokeny, a leading real-world asset tokenization platform, has joined forces with Dfns, the leading multi-party computation (MPC) wallet infrastructure and security firm, to provide a comprehensive tokenization solution for financial institutions. This new collaboration offers Tokeny’s enterprise-grade tokenization platform along with Dfns’ embedded non-custodial wallet infrastructure, enabling institutions to seamlessly issue, manage, and distribute ERC3643-based tokenized assets through a fully compliant suite of tools built for user experience and security.
Tokenization is poised to revolutionize finance, with blockchain networks playing a pivotal role as the shared financial infrastructure to eliminate data reconciliation and enable programmable securities to improve efficiency and asset liquidity. With the projected valuation of tokenized illiquid assets reaching $16 trillion by 2030 by BCG, it is crucial for institutions to embrace innovative solutions that cater to evolving market demands.
As the industry has evolved in recent years, use cases developed have leveraged market proven and audited permissioned token standard ERC3643, ensuring that only eligible investors can transfer digital securities and issuers are always in control. This open-source protocol brings compliance and control on the blockchain. However, the end users, such as issuers, agents, and investors, must adopt wallets to sign their blockchain operations. In some jurisdictions, issuers face some regulatory restrictions when offering wallet solutions to investors to facilitate their user journey.
The bundled Tokeny/Dfns solution brings financial institutions a turnkey platform where the blockchain complexity disappears. Users get automatically generated wallets and perform transactions directly on the GUI or via API integrations. The signatures of these transactions are on the blockchain, the user is in full control of the wallet and the process is similar to any web banking experience. By incorporating this solution into their operations, institutions can enhance operating efficiency and deliver innovative features to their customers without needing to face any blockchain complexity.
Key features of the Tokeny/Dfns solution include:
- An intuitive dashboard and powerful APIs allows users to navigate and manage tokenization projects effortlessly using ERC3643 standard. The solution streamlines the entire process, from issuance to lifecycle management, and provides all the required white-labeled tools for tokenization projects, including investor onboarding tools, permissions management tools, an investor portal, a marketplace, and secondary market solutions.
- The platform is multi-chain, multi-assets, and multi-jurisdiction.
- The ERC3643-based permissioned tokens incorporate compliance rules relying on on-chain identities to guarantee the ownership, which enables recovery functions, support for multiple wallets per investor, and more.
- A comprehensive dashboard provides the ability to track on-chain ownership and establish comprehensive cap tables that include investor data, aggregating on-chain identity addresses and off-chain relevant data relating to the identity.
- Unique programmability and granularity of actions due to the exposure of permissions, controls and policies at the API-level which enables automations and complex multi-step flows involving several approvers/stakeholders and other decision-making variables.
- The dashboard and API have embedded MPC wallets, enhancing the decentralization of the keys, reducing the surface of trust, and enabling cryptographic controls over asset movements by the custodian and/or final owners.
- Hardened TEE-based security measures and ensured compliance with all regulations can be guaranteed due to Dfns’s mastery of secure enclaves and composable key deployment schemes across multiple clouds, HSMs and availability regions.
- Non-custodial MPC wallet infrastructures provide financial institutions, who are bound by local regulations, with the opportunity to promote their services internationally, expanding their reach to include investors from other countries.
- Streamlined pricing model offers scalability and cost efficiency, providing financial institutions with a competitive advantage.