Lifecycle Management

Growth Through Automation

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Greater
Automation

Faciliting Smart
Collateral Mobility

Reducing
Complexity

Accelerating
Processing

Facilitating Smart Collateral Mobility

Tokenovate’s lifecycle management platform automates and streamlines the entire post-trade process, from trade record, data and rights through to tokenised settlement. By utilising smart contracts and asset tokenisation, the platform orchestrates and synchronises contractual obligations and assets in real time.

 

Once a trade is executed and validated on-chain, the simultaneous exchange of cash and securities can occur, potentially reducing settlement cycles from T+2 to T+0 and virtually eliminating settlement failures.

Reducing Complexity

Derivatives and securities financing transactions (SFTs) are inherently complex, yet they depend on only a few common standards. The lack of broad standardisation heightens operational risk and can slow trade activities. Validating and reconciling trade details across counterparties is often labour-intensive, prone to valuation or collateral discrepancies, and reliant on manual processes, leading to higher costs, longer settlement times, and a greater exposure to errors.

 

Tokenovate aims to eliminate these inefficiencies by serving as a single source of truth on a distributed ledger. This removes the need to maintain and reconcile multiple databases across central securities depositories (CSDs) and custodians.

Accelerating Processing

Through blockchain-based tokenisation and smart legal contracts,
Tokenovate is paving the way for near real-time settlement, while improving event management and transparency. This approach drives greater efficiency, opens the door to innovative financial products, and boosts overall market liquidity.

 

Tokenovate’s platform leverages the Common Domain Model to capture each state change in a financial instrument’s lifecycle. The lifecycle engine interacts with the blockchain via embedded conditional logic in smart contracts, creating an intelligent state machine. This delivers an immutable, verifiable “triple-entry” record of both economic and non-economic events, ensuring enhanced transparency and accountability.

Greater Automation

Contractual obligations are executed automatically through smart legal contracts, while Tokenovate’s “digital twin” approach to collateral continuously synchronises conditions between real-world assets and their digital representations. By unifying the CDM with smart contracts, the platform achieves consistent, automated, and faster straight-through processing for margin and event management.

 

Maintaining a single, digitised, and unified trade record largely eliminates the need for reconciliations, significantly reducing operational risk and costs while strengthening confidence in position accuracy.

Collateral Lifecycle Management

Accessing Collateral When Needed

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