On January 23rd, 2020, PwC Luxembourg announced a partnership with security token platform Tokeny. Through a ‘join business relationship’, the two will team up to provide full-spectrum tokenization services for a number of regulated assets.
Tokeny and PwC’s Partnership Explained
Tokeny, a security token platform situated in Luxembourg, has announced a new partnership with PwC. The collaboration — which the two refer to as a joint business relationship — will enable a “one-stop shop” for companies wishing to tokenize a number of assets.
Tokenization takes the typical rights associated with owning traditional securities, and converts them to the digital format of security tokens. Through blockchain technology, tokens can then see benefits which are otherwise unknown in the ‘paper stock’ world.
For example, tokens can be subdivided for fractional ownership, traded through a global market open 24/7/365, where transactions can be settled instantaneously through distributed ledgers, eliminating the existing need for costly middlemen. At the same time, compliance is a major factor for securities — and blockchain tech can be configured to guarantee compliance in a number of ways.
PwC Luxembourg, and its blockchain and crypto-assets team, will now work with Tokeny to help companies realize such benefits. The two have partnered to offer tokenization solutions involving every stage of the process — from pre issuance to the management of the asset’s entire life-cycle. All aspects are to be accounted for in the solution, including accounting, legal, regulatory, tax, risk assurance, cybersecurity, and custody.
The solution will also account for a wide variety of asset classes. These will include equity, debt, and alternatives.
Thomas Campione, leader of blockchain and crypto-assets at LwC Luxembourg says,
“Sometimes referred to as “Securitisation 2.0”, tokenisation has the potential to disrupt many asset classes (alternatives in particular), improve liquidity, allow for faster settlement, lower costs and reinforced risk management and compliance. PwC Luxembourg is cognizant that the market is still in the early phase of the adoption of blockchain overall, but we strongly believe that it is our responsibility to assume a leadership role in this field and have confidence in Tokeny Solutions’ platform and our vision and capabilities to play an important role in bringing value-added innovation to our clients and the market.”
Tokeny’s Progress in the Security Token Space
Tokeny has received notable recognition in the security token space. In 2019, Tokeny made the famed ‘FinTech 50’ list.
The company is backed by Euronext, a leading securities exchange in Europe. In 2019, it also formed the Digital Securities Alliance (DSA) with global law firm DLA Piper.
Concerning the newly forged partnership with PwC, Tokeny CEO Luc Falempin commented,
“Through tokenisation, institutions can digitise financial assets, such as equities, loans, bonds, funds and other securities, and streamline their administration to provide clients with a digital-first service. Along with reducing costs for firms, this new technology can open new revenue models and markets for industry players. It is an exciting time, and we are confident that joining forces with PwC Luxembourg, the largest professional services firm in Luxembourg, with the Firm’s amassed expertise and commitment to serving clients in the best way possible, we will amplify the range of services and benefits offered to PwC.”
What do you think about the ‘joint business relationship’ between Tokeny and PwC Luxembourg? Let us know what you think in the comments section below.
Image courtesy of Pymnts.