Tokeny and Dfns join forces to empower financial institutions with next-level tokenization tools. This partnership brings together Tokeny's enterprise-grade tokenization platform and Dfns' secure wallet technology. Together, they offer a streamlined solution for issuers to enable their traditional investors to easily manage and transfer tokenized assets like securities, art, equity, commodity, real estate, IP rights, and loans. Built with both compliance and user experience in mind, this suite of tools makes tokenization accessible and efficient for financial institutions.
The digital asset landscape has boomed in the past decade, but legacy systems and outdated approaches have created a cluttered market overloaded with an unnecessary layer of vendors. We believe optimizing infrastructure and developer experience goes hand-in-hand with crafting intuitive and secure user journeys. For today's institutional investors entering the digital asset space, navigating the crowded and often aggressive sales tactics can be overwhelming. Through this partnership, we aim to streamline operations by merging redundant services, resulting in a unified experience, reduced administrative burden, faster onboarding, and better customer support.
Institutions looking to create or buy tokens pegged to real-world assets can now use Tokeny's platform as an all-in-one solution that handles everything from secure login (using biometrics, PINs, or security keys) to managing the entire token lifecycle. This includes issuing tokens, setting up approval processes, verifying identities, providing secondary market solutions for trading tokens, and even recovering lost tokens. And that's not all, the Tokeny/Dfns integration offers much more to streamline and enhance your tokenized asset journey.
"This collaboration is a game changer because tokenized securities are now manageable with a great user experience, combined with the security and automation needed by large financial players. It makes it simple for institutions to harness cutting-edge technology to improve their operations and offer tokenized capabilities to their clients. As barriers to entry are lowered and compliance features meet institutional standards, we'll experience the full benefits of this transformative technology. Tokenization is not the future of finance anymore, it’s happening today.”
– Luc Falempin, CEO of Tokeny
The revolution will be tokenized
Imagine a financial system where data errors are eliminated, investments are programmable, and even illiquid assets like real estate or art can be easily traded online. This is the promise of tokenization, a technology that uses blockchain networks to revolutionize finance. By 2030, the value of tokenized assets is expected to reach $16 trillion, according to Boston Consulting Group. This means institutions need to adapt to these changing market demands by embracing innovative solutions like tokenization.
Dfns and Tokeny teamed up with Jack Chong and Harry Donnelly to create the first comprehensive guide for institutions entering the digital asset space. This guide, accessible through the References section, gives an overview of the potential for widespread institutional adoption of both blockchain technology and the digital asset class itself. By interviewing over 100 vendors and managers, and analyzing hundreds of research reports and articles, this guide acts as a treasure trove of knowledge and best practices for institutions looking to take the plunge and build their stack in web3.
Streamlined workflows with Tokeny and Dfns
The entire process of using Tokeny/Dfns technology makes tokenization easy by covering the entire lifecycle of tokenized securities. The solution is white-label and modular, allowing issuers to trailer their platform based on their needs. The platform supports any assets, on any EVM blockchain, and in any jurisdiction.
When issuers choose to use all the modules of the platform, it looks like the following:
- Pre-issuance: The platform provides seamless onboarding processes for investors to provide qualification and subscription. In this process, a built-in non-custodial wallet powered by Dfns will be created (see below), so investors will feel no difference from using any other digital traditional platform.
- Issuance: Issuers and their agents can then issue and allocate tokens to qualified investors who have completed the payments, by clicking on the ‘mint’ token button on the platform.
- Servicing: Issuers and their agents can conduct corporate actions such as export cap tables at any given time, redemptions, or send emails directly to their investors.
- Secondary: The platform provides multiple secondary solutions. It includes a license-exemption solution Billboard, a digital bulletin board for investors to publish ad-like trading offers to find an eligible counterpart for peer-to-peer transfers. It also provides connectivity with centralized and decentralized exchanges, other trading platforms, and DeFi protocols. All new investors will have to go through the onboarding process in the tokenization platform to ensure compliance.
More details can be found here.
Turning on digital assets within applications
For financial institutions, the Tokeny/Dfns integrated solution simplifies issuing and managing digital assets. No need to sign multi-year contracts with custodians that charge heavy base points on AUM. This unified, all-in-one platform removes the complexities of the blockchain, making it user-friendly. Users automatically receive wallets and can trade directly through a clear interface or by connecting to third-party apps. All transactions are secured on the blockchain, and users keep full control of their wallets ensuring a familiar, neobanking experience. By integrating Dfns' wallets-as-a-service functionalities to Tokeny's existing platform, financial institutions gain efficiency, security, and ease-of-use in one package.
Step 1: Registration and wallet creation
Signing up for Tokeny's investor portal is simple. Just create an account, fill in your details, and log in using any of the secure two-factor authentication (2FA) options enabled by Dfns. These options include biometrics like fingerprint or facial recognition and security keys like Yubikey. This method is both easy and secure because it relies on the WebAuthn 3.0 standard. This W3C-certified, open-source technology replaces traditional passwords with unique cryptographic keys called passkeys, stored securely on your device's secure enclave. The beauty of WebAuthn is that, with the right setup, no actions can be taken on behalf of users and without their explicit approval granted through digital signatures and personal credentials.
Step 2: Compliance and policy settings
After logging in, users, depending on their admin rights, can customize settings to manage transactions and wallets with complete freedom. This ensures compliance with both internal rules and external regulations.
- Permissions: Set specific access levels for different users within your organization.
- Policies: Define workflows for transactions, including factors like timing, approvers, amounts, and frequency.
- Quorums: Prevent unauthorized changes by requiring multiple designated approvers to sign off on policy and permission edits.
Step 3: Signatures and transfer approvals
From there on, users can frictionlessly transfer tokenized securities between their wallets, regardless of the blockchain they're on. This instant exchange works perfectly well across any blockchain platform.
“Dfns’ unique MPC implementation powers Tokeny’s platform with issuer wallets and enables issuers to generate wallets for their investors as well. This partnership enhances the UX for investors who do not need to interact with any private key and related blockchain complexity. One should think of it as an Apple-Pay-like experience for investors who want to access their tokenized securities instantly. It also enables end-to-end automations where the issuer can determine the compliance workflows they need. We are very excited about this new offer and wish to push out new features together in the coming months.”
– Clarisse Hagège, CEO of Dfns.
The Dfns/Tokeny bundle changes everything
Tokeny streamlines tokenized portfolio management. It offers an easy-to-use interface for investors to buy, sell, and track their tokens. Tokeny even authored a special type of token (ERC-3643), approved by the Ethereum Foundation as the standard for RWA tokenization, that includes investor information for better security and compliance. Additionally, Tokeny provides a dashboard to track token ownership and visualize investor details.
With Dfns’ embedded wallets, Tokeny now also offers:
- Smoother onboarding: Familiar login options like face scan make investing in digital assets more accessible and secure.
- Wider reach: Dfns supports multiple blockchains and various digital assets, giving investors more flexibility.
- Powerful controls: Dfns enables Tokeny to set detailed permissions and automate workflows for complex transactions.
- Effortless transactions: Investors enjoy benefits like gasless transactions and pre-built templates for different blockchains.
- Top-notch security: Dfns uses advanced techniques to protect investor keys and transactions.
- Adaptable configurations: Dfns allows Tokeny to configure security controls to different participants (investors, issuers, agents, etc.) and regulations.
References
- ERC-3643 Association
- BCG, ADDX estimate asset tokenization to reach $16 trillion by 2030
- Institutional Onboarding Guide for Digital Assets
About Dfns
Dfns is the leading wallet-as-a-service platform in web3. Startups, enterprises and financial institutions use Dfns to create, embed and manage programmable wallets at scale powered by the fastest, most advanced MPC technology in the world. Built by PhDs and experts in security and cryptography, Dfns is leading research in threshold signatures applied to keys. Since 2020, Dfns helped ABN AMRO, Fidelity, Zodia and many others to create over a million wallets. We’ve raised over $25M with White Star Capital, Motive, ABN AMRO, Bpifrance, Coinbase, Semantic, Wintermute, Figment, Motier Ventures, Hashed, 6MV, Susquehanna and others.
