MTCM and Tokeny Forge a New Path in Securities Issuance
MTCM, a prominent securitization platform known for its innovative approach, has recently taken significant strides by partnering with Tokeny, a leader in onchain operating systems. This collaboration is set to create a cutting-edge dual-format issuance framework that seamlessly integrates traditional and digital securities.
Launch of a Pioneering Dual-Format Issuance Framework
This groundbreaking partnership represents the launch of the first dual-format issuance framework, where an ISIN-listed note and a permissioned security token are generated simultaneously from a single legal compartment. This process not only ensures compliance but also enhances liquidity across both formats, setting a new standard in the market.
Benefits of Dual Issuance Model
According to Pedro Herranz, Managing Partner at MTCM, the collaboration allows for a new industrialized dual-issuance model that was not feasible before. The model includes a fungible twin issuance: one representing an ISIN-listed note that is settled through a leading international Central Securities Depository (CSD), and the other is an ERC-3643 based permissioned tokenized note on the blockchain. This innovative structure provides investors and arrangers with an option between traditional or blockchain settlement, maintaining compliance and operational efficiency without sacrificing investor protections.
Enhancing Accessibility and Speed
Tokeny’s CEO, Luc Falempin, remarked that the dual issuance model not only facilitates traditional investors' transition into the onchain realm but also speeds up the adoption of these modern assets. He notes that once investors experience the efficiency of faster settlements and simplified access, they will naturally gravitate towards this contemporary way of managing and transferring securities, thereby reshaping market demand.
Integration of Tokeny’s T-REX Platform
Integrated into MTCM’s end-to-end solutions is Tokeny’s T-REX tokenization platform, which empowers MTCM to act as a structurer and administrator while offering user-friendly interfaces to all stakeholders involved. This integration is live and supports the entire lifecycle of digital issuance, spanning from onboarding to secondary market solutions through MTCM's white-labeled investor portal. The technology involved simplifies the onboarding process by embedding digital identity, AML/KYC verification, wallet integration, and cap table management into a single easy-to-use interface.
Transforming Structured Finance
The adoption of this dual-format issuance model not only enhances access but also significantly improves speed and cost efficiency within structured finance. Investors can self-custody their digital securities, sidestepping the high distribution and custodian costs traditionally linked with structured notes. For arrangers, this hybrid model broadens their distribution capabilities by attracting both conventional investors and those accustomed to blockchain technologies.
MTCM's Significant Growth
With an impressive portfolio that includes over €2.5 billion in assets under service and a remarkable 400% surge in assets under service over the past two years, MTCM continues to expand globally and lead the innovation in hybrid financial structuring. Through this strategic partnership with Tokeny, MTCM is leveraging the advantages of both traditional capital market structures and blockchain efficiencies, redefining how structured investments are created, shared, and managed.
About MTCM
Founded in 2010, MTCM is at the forefront of a global securitization revolution. The firm operates across multiple regions, including Switzerland, Luxembourg, Spain, Panama, and Dubai. MTCM specializes in delivering customized securitization solutions in accordance with Luxembourg’s Securitization Law. By enhancing asset bankability and streamlining connections between investors and underlying exposures, MTCM empowers clients with effective, compliant, and scalable financing solutions.
Exploring the Future with Tokeny
Tokeny is known for its significant impact in onchain finance and is a vital part of the Apex Group, which comprises over 13,000 employees across 112 offices worldwide. With years of expertise, Tokeny equips financial institutions with what they need to securely and compliantly represent assets on the blockchain. This allows them to issue, manage, and distribute securities fully onchain, unlocking a multitude of benefits including rapid transfers and broader access to tokenized assets.
Frequently Asked Questions
What is the significance of the partnership between MTCM and Tokeny?
The partnership enables the simultaneous issuance of traditional and digital securities, enhancing compliance and liquidity while offering greater efficiency in structured finance.
How does the dual-format issuance framework work?
The framework produces both an ISIN-listed note and a permissioned token from a single legal source, ensuring fungibility between formats.
What advantages does Tokeny’s T-REX platform provide?
Tokeny’s T-REX platform simplifies workflows and enhances user experience by integrating AML/KYC, digital identity verification, and more into one interface.
What impact does this model have on investors?
Investors enjoy increased access, liquidity, and reduced costs associated with self-custody of securities and faster settlement processes.
What are MTCM's future goals?
MTCM aims to continue leading innovation in hybrid financial structuring while expanding its global reach and enhancing its service offerings.
