The Industry Spread > Industry News > Euronext Acquires 23.5% Stake In Compliant Tokenization Platform
The leading Pan-European exchange is convinced of the long term impact of tokenization on the financial industry. The investment will allow Euronext to onboard a renowned team in the digital asset industry, and broaden its client base towards private companies and investment firms.
Euronext has secured a 23.5% stake and strong governance representation in Tokeny Solutions, a compliant tokenization platform launched in 2017, by subscribing the entire €5 million capital increase.
Tokeny Solutions provides modular and user-friendly end-to-end solutions to issue, manage and transfer tokenized securities on a public blockchain. Clients include private markets securities issuers, from mid-cap companies and asset management companies to advisors like investment banks.
The firm uses the T-REX protocol to create tokens compliant by integrating compliance obligations into the digital asset smart contract. Tokenization – the process of converting rights of an asset into a token that can be subdivided, traded and stored on a blockchain system – allows institutions to digitize financial assets, such as equities, debt-like instruments, funds and streamline administration to provide clients a digital-first service.
The investment will help Euronext keep the pace of the digital asset revolution as the operator now combines Tokeny Solutions’ token management expertise with LiquidShare’s post-trade solutions.
In December 2018, Euronext announced the pilot phase of LiquidShare’s European post-trade settlement infrastructure for shares in small and medium-sized enterprises (SMEs) using blockchain. The platform connects to asset managers’, broker-dealers’ and custodians’ information systems, enabling them to more easily invest in and process listed and non-listed European SMEs.
Tokeny Solutions was named the 2019 Startup of the Year at KPMG’s FinTech Awards Luxembourg.
Euronext has recently acquired Norwegian exchange and central securities depository operator, OsloBørs VPS for around €625 million. The Irish Stock Exchange which was acquired in late 2017 for €137 million.
In late 2018, the operator acquired 78% of the capital of SaaS provider Commcise from its founders for £27 million to address the needs of the buy-side and sell-side communities with ways of simplifying their business and efficiently managing research procurement and commissioning across the globe.