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Corporate Investment Bank

Bond and security issuance streamlined through tokenization

Blockchain-based tokenization solution

Situation

An American corporate investment banking services holding company — and one of the world’s largest custodian banks — wanted the ability to issue tokenized bonds and securities

Because the traditional methods of issuing bonds and securities can be time consuming and complex, the client wanted to make the process simpler as well as faster. Realizing the benefits of tokenizing traditional financial products, the client wanted to implement tokenization for its issuing services. Due to the high demand from its clients, however, the company needed to release it to the market within a short period of time.

Unfortunately, its in-house teams lacked the required expertise in blockchain technology to enable tokenization.

Impact

Failing to enable tokenization of financial products may have resulted in:

  • Limiting its customer base, as tokenization enables a broader segment of customers to invest
  • Reduced competitiveness due to clients preferring to invest in more accessible and liquid assets
  • Higher costs, owing to the multiple intermediaries and manual processes involved with the traditional processes of issuing bonds and securities

Resolution

Our reputation for excellence in blockchain technologies prompted the client to enlist our services. We assisted the client in streamlining its bond and security issuance process through a tokenization solution that allows the client to issue tokens on a private Ethereum network.

With our tokenization solution, the client gained:

  • A cost-effective way to accelerate the bond and security issuing process
  • The option to move from the private Ethereum network to a public Ethereum network
  • The ability to transfer tokens directly to other financial institutions

Outcomes

For an American corporate investment banking services holding company — and one of the world’s largest custodian banks we enabled:

  • A streamlined process in which it can issue bonds and securities as tokens on a blockchain
  • Optimized liquidity and reduced transaction friction for seamless transactions
  • The capability to expand its investor base