Tokenised Settlement

Revolutionising Value Transfers

Capitalise on Market Opportunities with Tokenised Settlements

Modern financial markets often tie up capital due to lengthy settlement cycles and higher collateral requirements, preventing firms from using their funds in revenue-generating activities.

 

At the heart of every financial transaction is the transfer of beneficial ownership, yet most trades still settle on a T+2 basis. This model increases credit risk and forces firms to hold additional capital in case a trade fails to settle.

Tokenisation Done Right

Tokenovate provides legally and operationally robust tokenisation solutions, enabling rapid, secure settlement, efficient movement of collateral, and optimised liquidity; all within a regulatory-compliant framework.

 

By integrating tokenisation with established legal, operational, and regulatory standards, Tokenovate delivers genuine benefits to Tier 1 and Tier 2 banks, broker-dealers, and asset managers, while paving the way for future growth and adoption.

 

Moving from T+2 to atomic or near real-time (T+0) settlement substantially reduces both operational and settlement risk, and can lower capital costs through more effective asset use. Swift settlement and improved collateral management free up capital, allowing institutions to deploy their resources more efficiently. Tokens can be transferred quickly and stay under custodial control until a final transferee opts for physical redemption.

Saving Millions

Shortening the settlement of collateral assets from T+2 to seconds can bring considerable cost savings for an average-sized bank.

At a 5% interest rate, holding USD 1 billion in collateral for two days costs approximately USD 274,000. Eliminating this delay could translate into annual savings of around USD 70 million, enabling banks to use their funds more effectively and capitalise on market opportunities more swiftly.

A Partnership-centric approach

Transforming a market doesn’t happen in isolation

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