Lition, the only scalable public-private blockchain with deletable data features made for commercial products and Tokeny, the compliant tokenization platform delivering institutional grade solutions in the issuance, lifecycle management and secondary trading of digital securities, today announced a cooperation. Both parties will work together to tokenize securities in a fully legally compliant way, including the ability to protect and delete private data, while preserving typical features of a blockchain like immutability and security.
The announcement marks a big step forward in the industry, as institutional involvement across blockchain begins to ramp up and significant players enter the market. The traditional way of issuing securities is time-consuming, multi-tiered and involves many middlemen using local and cumbersome systems. Through blockchain technology, parties can benefit from using one single and global infrastructure that improves transaction speeds, utilizes automation and is accessible 24/7/365 days a year.
Lition has previously signed an agreement with a real estate development company and two branches of the VR Bank, a leading banking conglomerate in Germany with assets over $1 trillion to develop a solution to process syndicated loans on Lition‘s proprietary blockchain infrastructure. The loan volume for a housing complex in Germany has a volume of approx. €20 million, which will now be the basis to issue security tokens created using Tokeny‘s T-REX (Token for Regulated EXchanges) standard.
CEO of Tokeny, Luc Falempin commented, “The advantages of using blockchain technology in the issuance of securities are overwhelming. Those benefits are starting to be recognised by regulated institutions and this initiative is proof of that recognition. What has held this technology back from institutional adoption is the lack of compliance and regulation. “
He continued, “This is the exactly why we developed the T-REX. This standard allows for the compliant trading of digital securities by enabling issuers to control transfers and ensures investors meet the obligations in each jurisdiction the assets are distributed in. We are incredibly excited to be utilising the T-REX and working with Lition and VR Bank in this genuinely first-of-a-kind technical demonstration of an offering.“
Lition CEO, Richard Lohwasser mentioned, “We‘re tremendously pleased to announce this initiative with Tokeny after having already announced our partnership with the VR Bank earlier this week. The benefits of tokenizing securities are very strong. So far high legal hurdles have hindered large scale adoption, but by ensuring data privacy and deletion with our unique technological solution, we‘re finally one step closer to legal security token offerings. It opens up the door for many others to follow suit“
The Luxembourg based fintech company is the market-leader in delivering an institutional grade, secure end-to-end platform, allowing for the issuance and servicing management of digital assets.
Tokeny utilizes the T-REX (Token for Regulated EXchanges) infrastructure to ensure compliance from the issuance of tokenized securities to their lifecycle management. Tokeny provides technical solutions to onboard investors, manage corporate actions such as dividends, voting, and announcements. Their solutions ensure continuity with regards to KYC and AML compliance checks, ensuring all participants are eligible for the investment.
Tokeny‘s solution leverages blockchain technology and couples it with decades of experience from the traditional securities world. Tokeny utilizes this background to make the participation of any contributor in a security token offering transparent, accessible, and completely secure.
About Lition Technology AG – Lition is a blockchain infrastructure and dApp developer, with 20 employees mostly based in Berlin. Lition’s new blockchain infrastructure addresses key commercial and business issues that have prevented blockchain networks from reaching widespread mainstream adoption so far. With scalable public-private blockchain and ‘deletable’ data features, the Lition network allows businesses and large enterprises to bring innovative blockchain applications to the mass-market that are legally compliant.
Lition has also developed and launched the world’s first commercially live P2P energy trading platform, currently serving customers in 50 cities across Germany, and is actively working with the German Government to provide a technical solution for the issuance of security tokens.