Yesterday
Euronext, the world’s sixth-largest stock exchange by market capitalization, announced it invested €5 million ($5.65m) for a 23.5% stake in Tokeny Solutions. The startup is a Luxemburg-based finTech which offers institutions and issuers the ability to tokenize assets, equity and investment funds and issue the tokens on public Ethereum.
Tokenization can cut costs by bypassing intermediaries and automating processes. Potentially it can improve liquidity by enabling fractional ownership and trading is around-the-clock. Plus it increases transparency by providing audit trails for securities transactions.
Tokeny’s solution manages the issuance of tokens, transfers on the blockchain, as well as servicing such as dividends. Its T-Rex product ensures all tokens meet compliance requirements and hence are referred to as permissioned tokens. The tokens adhere to the Ethereum ERC-20 standard. However, the transfer of tokens from a seller to buyer is conditional on compliance. Additionally, the transfer has to be in accordance with any governance criteria specific to the token. But the tokens themselves are on the public Ethereum blockchain.
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