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Euronext backs compliant tokenization platform Tokeny Solutions

Image:Bloomberg

Wed, 03 Jul 2019, 10:28 am UTC

European stock exchange Euronext has made an investment in Tokeny Solutions, a Luxembourg-based tokenization platform.

According to the press release, Euronext has subscribed Tokeny Solutions’ entire €5 million capital increase, resulting in a 23.5% stake and strong governance representation.

Launched in 2017, Tokeny Solutions is a fintech company that provides all private markets securities issuers with end-to-end solutions to issue, manage, and transfer tokenized securities on public blockchain. Its T-REX protocol integrates compliance obligations into the digital asset smart contract, to create tokens that are compliant by design.

Tokenization is defined as the process of converting rights of an asset into a token that can be subdivided, traded and stored on a blockchain system. It allows institutions to digitize financial assets, such as equities, debt-like instruments, and funds.

Tokeny Solutions’ offers a platform that allows the issuance and the management of tokenized securities throughout their lifecycle.

In 2017, Euronext, in collaboration with other financial institutions including BNP Paribas and Société Générale, launched a blockchain-based venture, called LiquidShare, to simplify SME post-trade operations.

Euronext said that the investment in Tokeny Solutions complements its position in the digital asset industry, combining the latter’s token management expertise with LiquidShare’s post-trade solutions.

“Tokeny Solutions will allow Euronext to onboard a renowned team in the digital asset industry, and broaden its client base towards private companies and investment firms,” the release said.

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