European Stock Exchange Euronext Buys 23.5% Ownership of Tokeny Blockchain Tokenization Firm
Euronext, a European stock exchange with branches in Amsterdam, Paris, London, Brussels, Dublin, Oslo and Lisbon, is reportedly investing €5 million on Tokeny Solutions.
The amount, equivalent to $5.6 million, according to the exchange, would be channeled straight to the company’s capital pool and effectively grant Euronext over 23.5% ownership.
Tokeny Solutions is a platform credited with providing private markets securities issuers with flexible and user-friendly packages, allowing them to basically deal with all-things tokenized securities. Launched in 2017, it has grown to its current stature whereby it deals with a plethora of mid-cap companies, asset managers and investment institutions.
The investment will, thus bring together Europe’s largest stock exchange and a company whose operations pegged on the Blockchain technology. The investment will also give Euronext what the announcement termed a “strong governance representation” of the platform.
Tokenization in the mainstream financial industry is slowly becoming a trend
The financial sector is gradually tilting towards asset tokenization, especially on such assets as equities, debt instruments and funds. Blockchain is also helping to revolutionize how a more effective administration structure is achieved. In all these, one of the key benefits is the fact that all records about the transactions get stored safely and securely.
For a majority of those who’ve embraced this new wave, however, another major benefit is the profits realized. The CEO of Goldman Sachs is one of the latest notable personalities to speak about it, going to as far as touching on stablecoins. He further hinted on the agency going the JP Morgan Chase way and introducing their native token.
The sentiments have been further echoed by Seed CX CEO, Edward Woodford, who sees tokenization as the key to the future of asset trading, albeit digitally. Already, Securitize, a San Fransisco-based startup, is greatly helping many hop into the tokenization bandwagon. It has a platform that helps firms tokenize their securities and assets without enduring lots of hassles.
The move, according to Euronext, however, is purely intended to help develop solutions tailored to suit its client base now and in the future. The company’s Press Release suggested that they chose to invest in Tokeny Solutions because of the potential impact of tokenization in the financial world.