“The programmability of tokenized assets enables issuers to fractionize assets and automate processes,” says Luc Falempin, CEO at Tokeny. The use of this type of asset leads to other advantages in the financial sector. Interview.
Can you introduce Tokeny in a few words?
Tokeny defines itself as a software publisher enabling financial institutions to issue, manage and transfer financial assets and products on a blockchain.
What are your latest innovations?
Today’s capital markets work disjointly and inefficiently, with multiple fragmented and siloed networks barely able to communicate. This leads to an analog industry plagued by slow, inaccurate and costly processes. A shared and distributed ledger brings all stakeholders to improve the transparency of information and interoperability through tokenization. More importantly, the programmability of tokenized assets enables issuers to fractionize assets and automate processes. However, only investors meeting eligibility conditions should hold tokenized assets, to ensure full compliance. Through our solutions, assets are issued as permissioned tokens with embedded rules that act as automated compliance validators to check the eligibility of investors via their digital identities. We aim to help firms and institutions upgrade assets compliantly on a blockchain without any technical difficulties, allowing them to reduce costs and improve asset liquidity.
What do you think of Luxembourg’s ecosystem?
Luxembourg’s proactive regulatory framework supports a robust and rapid growth of the tokenization ecosystem. In 2019, the regulator permitted the maintenance and circulation of securities on a blockchain. Two years later, we could issue native securities on a blockchain, making Luxembourg a prime location for tokenizing securities. Earlier this year, CSSF released a DLT whitepaper on the use of blockchain technology in the financial sector. Issuers can now tokenize their assets on a blockchain if they know how to handle the technical risks. Here is where we come to play: To protect issuers from the technical risks associated with tokenization. The following list of Luxembourg’s tokenized assets already uses our solutions: BlocHome, Tokenchampions, WeInvest, Finimmo, and Digibrixx. We expect more financial players to enter this market as institutional adoption grows.
“A shared and distributed ledger brings all stakeholders to improve the transparency of information and interoperability, through tokenization”.