#Luxembourg #digital securities #MTCM #Tokeny

Revolutionizing Securities Issuance: The MTCM and Tokeny Partnership

In a groundbreaking collaboration, MTCM, a leading securitization platform based in Luxembourg, has partnered with Tokeny, an innovative onchain operating system. This partnership aims to facilitate the issuance of both traditional and digital securities through a single, efficient workflow. As one of the first of its kind in Luxembourg, this dual-format issuance framework highlights the growing intersection of traditional and digital finance.

The newly established system allows for the simultaneous minting of an ISIN-listed note alongside a permissioned security token within the same legal compartment. This move ensures that the two formats are fully fungible and compliant with existing regulations, making it a significant stride towards seamless integration in the financial sector.

Pedro Herranz, Managing Partner at MTCM, emphasized the importance of this partnership, stating, "The collaboration with Tokeny enables us to industrialize a dual-issuance model that was not previously possible. Now, we can produce a fungible twin issuance where one leg is an ISIN-listed note settled through a reputable international Central Securities Depository (CSD), while the other leg consists of ERC-3643-based tokenized notes on the blockchain. This innovation allows investors and arrangers the flexibility to choose between blockchain or traditional settlement routes, all while maintaining compliance, operational efficiency, and investor protections."

Luc Falempin, CEO of Tokeny, added that this dual issuance model serves as an effective bridge for traditional investors exploring the onchain format. He states, "Once they experience these assets—which offer quicker settlements and enhanced access—they will naturally gravitate towards the modernized methods of accessing, managing, and transferring securities. We anticipate that this approach will significantly drive the demand from the buy-side and encourage wider adoption of tokenized solutions."

Tokeny’s T-REX tokenization platform will be integrated into MTCM's comprehensive end-to-end services as a white-label solution. MTCM assumes the roles of structurer, administrator, and calculation agent while Tokeny simplifies interactions for all involved stakeholders. The current integration is operational, supporting the entire lifecycle of digital issuance—from onboarding and KYC processes to subscription and secondary market solutions—within MTCM's dedicated white-labeled investor portal.

This partnership is poised to enhance access, speed, and cost-effectiveness in structured finance. Institutional and accredited investors can enjoy self-custody of digital securities, thereby circumventing the hefty distribution and custodian fees usually tied to structured notes. Additionally, arrangers can tap into a broader distribution universe that merges traditional markets with blockchain-native investors, expanding their outreach and market potential.

As MTCM continues to grow, managing over €2.5 billion in assets, and experiencing a remarkable 400% increase in assets under service over the last two years, the firm is leading the charge towards innovation in hybrid financial structuring. By uniting the strengths of capital markets infrastructure with the efficiency afforded by blockchain technology, MTCM and Tokeny are reshaping how structured investments are issued, distributed, and managed in an increasingly digital finance landscape.

This partnership is not merely about compliance and efficiency. It represents a profound shift towards a financial ecosystem where both traditional and digital assets coexist and complement each other, catering to a broader range of investors and enhancing overall market accessibility.