Tokenovate

The Fintech Times (by Thomas Bleach and Francis Bignell) recently published a very interesting article on the roadmap to success or failure for the FCA's crypto regulation. The article included several good contributions from leaders at Kraken Digital Asset Exchange, Xapo Bank, Ripple, Keystone Law and CoinCover. Another angle worth considering comes from Tokenovate's Chief Legal & Product Officer Ciarán McGonagle, who observed that DLT technology is rapidly evolving from speculative use cases to driving transformative change as the foundation of secure, efficient, and transparent financial infrastructure. The FCA’s roadmap reflects this shift, striking a critical balance while recognising the dual nature of the crypto market. Robust consumer protections are essential for retail investments, but the tokenisation of wholesale capital markets demands a different approach. At Tokenovate, we believe financial markets are at a historic inflection point. The FCA’s roadmap aligns with our vision: leveraging the convergence of legal, regulatory, and technological standards to strategically transform global financial systems. The ambition underpinning the FCA’s roadmap makes it clear that the market has crossed the Rubicon. Incremental change is no longer enough. The UK must focus on laying the foundations for an interoperable, digital-first financial framework - one that embeds rights, rules, and permissions directly into trade life-cycle and settlement workflows. This is a pivotal step toward establishing the UK as a leader in a data-driven, tokenised financial ecosystem, aligned with Tokenovate’s mission to create a more efficient, automated and equitable financial system. https://lnkd.in/eumwznst

Next week, Tokenovate is hosting its fourth and final roundtable of 2024. An invite-only, Chatham House rules event, "Tokenovate | Talks" go deep on specific topics important to our industry. Over the year, we have discussed tokenisation, collateral mobility, settlements and reconciliation, carbon markets, legal and compliance issues, and trade operations and automation. The conversations have been open, constructive, illuminating and educational. We've welcomed senior leaders from a range of organisations, from banks, funds and brokers to law firms, industry associations and technology providers. We want to thank all of our friends and guests for making these events so positive and collaborative. If you would like to attend future roundtables, let us know in the comments, contact us through our website, or direct to Gunnar Larsén.

As our Chief Product & Legal Officer Ciarán McGonagle writes in this comment, Tokenovate welcomes the recommendations from the U.S. Commodity Futures Trading Commission to expand use of non-cash collateral through the use of DLT. This recommendation is closely aligned with our own vision of building a comprehensive digital rights management system that embeds rights, rules, and permissions directly into tokenised trade and collateral workflows for financial products, including derivatives. #cftc #collateral #dlt #tokenisation #tokenization

FinTech Connect is an event in London that brings together visionaries from the UK, Europe and beyond; shaping the future of how we ALL interact with financial services. Tokenovate CEO Richard Baker will be joined by Devina Paul (Zumo), William Sault (Connect Earth), and Jasmine Baker, MBE (Grow London and London & Partners) on a panel on the topic of "The Future of London Fintech". The panel will be covering broad future-facing topics such as sustainable finance, tokenisation & digital assets, financial inclusion and cyber security & data privacy.   More information and sign-up 👉 https://lnkd.in/eazPKJjk

Marc Gratacos of TradeHeader's analogy of Digital Regulatory Reporting (DRR) as a "compliance SatNav" is spot-on (as per the Finextra article below). At Tokenovate, we recognise the challenges firms face in navigating evolving regulations. Our trade lifecycle management platform integrates the ISDA and FINOS Common Domain Model (CDM) with DRR modules, automating post-trade processes. This ensures that each business event is accurately recorded on the blockchain, facilitating seamless and compliant reporting. Through CDM, DRR and DLT, we can collectively enhance transparency and efficiency in regulatory compliance. #DRR #ISDA #CDM #DLT #compliance https://lnkd.in/ek9T78dg

Recently, Tokenovate CEO Richard Baker went to Illuminate Financial's "Enterprise Fintech Forum" at the Singapore FinTech Festival. Here are Richard's observations: The financial services industry is at a pivotal moment, balancing recovery from recent market challenges with the exciting potential of emerging technologies. At the Forum, industry leaders and innovators gathered to discuss the state of FinTech, AI adoption, and the future of finance. ✅ FinTech Funding: A Tale of Two Stages While late-stage growth companies continue to face funding challenges, there's a growing appetite for earlier-stage investments. The total FinTech investments for 2024 are approaching $40 billion, signalling a potential upturn from the previous venture winter. However, a notable bifurcation exists, with AI-focused startups receiving a significant portion of investments, leaving other sectors needing help to secure funding. ✅ AI: From Scepticism to Strategic Implementation AI has moved beyond the hype cycle and is now being strategically implemented across financial institutions. Banks and FinTechs leverage AI to improve operational efficiency, enhance client experiences, and strengthen compliance processes. However, challenges remain, particularly in areas of explainability, liability, and regulatory compliance. ✅ The New Face of Finance The financial industry is undergoing generational changes, including the institutionalisation of digital assets, the rise of ESG considerations, and the growing importance of private markets and credit. Enterprise technology, especially AI, is reshaping the competitive landscape, with FinTechs now challenging incumbent vendors rather than traditional financial institutions. ✅ Regional Nuances in AI Adoption The Asia-Pacific region presents unique opportunities and challenges for AI adoption in finance. Varying regulatory landscapes and government initiatives are shaping the implementation of AI solutions, requiring a tailored approach for each market. Collaboration and shared learning are crucial for successful AI adoption across the region. ✅ Looking Ahead: The Convergence of TradFi and DeFi As we look to the future, the potential convergence of traditional finance (TradFi) and decentralised finance (DeFi) presents intriguing possibilities. The tokenisation of traditional assets, such as bonds, physical assets like commercial property, telecommunications infrastructure and the development of CBDCs could reshape the financial landscape. However, this transition will likely involve a period of integration and consolidation, similar to the early days of other transformative technologies. In conclusion, the financial services industry is poised for significant transformation. Adaptability, strategic AI implementation, and a keen understanding of regional nuances will be key to success as we navigate this evolving landscape. The future of finance is being written now, and it promises to be an exciting chapter indeed!

🔥 Blog alert 🔥 🌳 Beyond COP29: Embracing Article 6 Standards in the Voluntary Carbon Market 🌳 We have previously highlighted how Tokenovate’s solutions align with Article 6 requirements to support a transparent Voluntary Carbon Market (VCM). Now, as COP29 unfolds, our focus shifts to the challenge of fully implementing these standards to build a resilient carbon market. The adoption of Article 6 standards at COP29 is a crucial step toward a more structured, reliable VCM, establishing requirements for traceability and risk management. However, fragmented data across registries has led to inconsistencies, hindering trust and transparency. Although COP29’s approval of Article 6.4 addresses data transparency, a unified framework is still needed to connect voluntary carbon credits (VCCs) with industry and financial standards. Integrating VCCs into the global financial system is complex, given the unique standards across sectors like energy and manufacturing. Industry-wide collaboration is essential to expand and standardise frameworks based on Article 6.4, enabling a functional, efficient VCM. Financial markets have already seen efforts, like ISDA’s legal standards for VCC derivatives, which lay a foundation for further collaboration on a Common Domain Model (CDM) for VCCs. A CDM-compatible model will help integrate VCCs into financial infrastructure, enhancing market liquidity. Effective carbon credit standards must also align with the specific data needs of climate projects, from forestry to renewables. Achieving rigorous, cross-sector reporting requires compatible data protocols to enable smooth data exchange. The goal is standardised, robust project disclosures that underpin asset value. Tokenovate supports initiatives by the The World Bank and The Integrity Council for the Voluntary Carbon Market (ICVCM)’s DAIP, leveraging blockchain and tokenisation to ensure transparent, verifiable project data, enhancing market trust. Moving forward, the Article 6.4 goals require coordination to align standards across platforms and jurisdictions. Collaboration between regulatory bodies, financial institutions, and technology providers is key to a robust, adaptable carbon market. Tokenovate is committed to this effort, promoting a well-integrated VCM framework through partnerships, open standards, and dialogue to support net-zero goals. Read the full blog post here 👉 https://lnkd.in/ewQ8sTTZ Don't forget to follow us here 🙏 #COP29 #VCCs #VCM #Article6 #ISDA #CDM #Tokenization Ciarán McGonagle Brendan Bradley Richard Baker Stephen Ashworth Gunnar Larsén Nathan Cropper Steve Haigh

Tokenovate CEO Richard Baker attended the Singapore FinTech Festival last week. It was a busy and productive week, with plenty of interesting and important industry announcements and discussions. Read his thoughts and observations in the post below👇 Don't forget to follow us here for similar updates 👆 #tokenization #blockchain #smartcontracts #CDM

We couldn't agree more! In this (👇 ) thoughtful yet punchy article, Joshua Lloyd-Lyons of Fidelity International Strategic Ventures brings cinematic flair to a serious topic: "Back office to the Future". Joshua highlights how decades of underinvestment and limited technological innovation have left investment managers with outdated back office infrastructures, which are now top strategic priorities. Price competition has driven margin compression, leading to chronic underfunding that’s finally catching up. The takeaway? Current back office infrastructure isn’t fit for purpose. A recent State Street survey underscores this point, revealing that the average institution needs to upgrade >50% of its existing technology to meet its data goals. An fundamental digital transformation journey is required! As financial services institutions set-off on this essential journey, they are not only updating their back office systems - they are redefining their capabilities to meet the needs of a more complex and demanding market. Tokenovate's vision is to position us as the premier decentralised financial market infrastructure, reshaping the trading and tokenisation ecosystem. And we can help financial institutions and back offices to be more like Marty McFly (rather than Biff). https://lnkd.in/eE3FBPZx

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