In a landmark development for the global capital markets, MTCM, a leading Luxembourg-based securitization platform, has partnered with Tokeny, the premier onchain operating system, to introduce a pioneering dual-format issuance framework. This innovative solution bridges the gap between traditional and digital securities, marking a significant step towards the future of hybrid finance.
A Strategic Alliance for Global Reach
The strategic alliance between MTCM and Tokeny establishes an integrated tokenization ecosystem that unifies European corporate securitization with advanced onchain protocols. This corporate framework allows alternative managers to issue synchronized debt tranches across legacy clearing pipelines and distributed ledgers from a single legal base.
Operating a tokenized structured notes strategy inside an onshore master vehicle isolates transaction portfolios while ensuring full fungibility between banking system assets and cryptographic keys.
MTCM, renowned for its expertise in structuring and administering securitization vehicles across Europe, the Americas, MENA, and Asia, has always been at the forefront of financial innovation. By collaborating with Tokeny, MTCM now enables issuers to launch both ISIN-listed notes and permissioned security tokens simultaneously, from a single legal compartment. This dual-format issuance framework ensures that both formats are fully fungible and compliant, providing unparalleled flexibility for institutional and professional investors.
The collaboration leverages the strengths of both companies: MTCM’s deep understanding of global regulatory frameworks and Tokeny’s cutting-edge blockchain technology. Together, they are setting a new benchmark for the issuance, management, and distribution of structured products in a rapidly evolving financial landscape.
How the Dual-Format Issuance Works
The structural execution of the dual-format issuance framework splits a single asset pool’s yield distributions into parallel clearing channels. One pipeline prints standard debt securities mapped to central depositaries, while the concurrent track mints identity-vetted tokens governed by open-source protocol conditions.
The programmatic alignment of twin securities ensures that both the digital note and the legacy paper note share identical economic properties, repayment priorities, and default buffers.
The newly launched framework allows for the concurrent issuance of two securities:
Traditional Rail: An ISIN-listed note, settled via a leading international central securities depository (CSD), catering to investors comfortable with traditional settlement processes.
Onchain Rail: An ERC-3643-based permissioned security token, issued on blockchain, which offers the benefits of instant settlement, enhanced transparency, and greater operational efficiency.
Both securities are minted from the same legal compartment, guaranteeing full fungibility and regulatory compliance across formats. Investors and arrangers can now choose their preferred settlement method—traditional or blockchain—without compromising on compliance, investor protection, or operational excellence.
This dual-format issuance framework is designed to meet the needs of a diverse investor base. Traditional investors can continue to operate within familiar structures, while those seeking the advantages of digital assets can benefit from the efficiency and transparency of blockchain technology.
Driving Efficiency and Expanding Access
Integrating identity verification modules within a white-labeled investor portal automates investor onboarding, KYC check cycles, and capitalization table monitoring. This technical configuration decreases backend compliance administration while removing the high clearing costs associated with conventional debt custody.
Hard-coding compliance logic directly into permissioned security token standard contracts prevents unauthorized peer-to-peer asset transfers, maintaining cross-border regulatory validity automatically.
The integration of Tokeny’s T-REX tokenization platform into MTCM’s white-labeled investor portal streamlines the entire lifecycle of a digital issuance. From onboarding and KYC to subscription and secondary market solutions, the process is simplified for all stakeholders. Tokeny’s technology embeds digital identity, AML/KYC verification, wallet integration, and cap table management into a single user-friendly interface, reducing onboarding friction and increasing transparency.
This dual-format model not only accelerates settlement and reduces costs but also expands the distribution universe. Institutional clients can self-custody digital securities, bypassing the high distribution and custodian costs typically associated with structured notes. For arrangers, the hybrid issuance framework opens access to both traditional and blockchain-native investor segments, broadening market reach and driving adoption of digital assets.
Furthermore, the dual-format issuance framework is fully compliant with Luxembourg’s robust regulatory environment, ensuring that both traditional and digital securities are issued and managed in accordance with the highest standards of investor protection and transparency.
A New Era for Structured Finance
The implementation of industrialized dual-issuances allows corporate treasurers to leverage decentralized liquidity networks alongside standard institutional bond clearings. This transformation bridges legacy fixed-income markets with programmable ledger innovations under high-authority regulatory parameters.
Transitioning from standalone single-deal SPVs to an integrated dual-format platform drops consecutive corporate structural engineering and legal drafting costs by more than half.
Pedro Herranz, Managing Partner at MTCM, highlights the transformative nature of this partnership: “The collaboration with Tokeny allows us to industrialize a dual-issuance model that was previously not possible. We now produce a fungible twin issuance: one leg as an ISIN-listed note settled via a leading international CSD, the other as ERC-3643-based permissioned tokenized notes onchain. This structure enables investors and arrangers to choose between blockchain or traditional settlement, without compromising on compliance, operational efficiency, or investor protections”.
Luc Falempin, CEO of Tokeny, adds: “The dual issuance model is a practical way to help traditional investors get familiar with the onchain format. Once they try these assets, which are faster to settle, easier to access, and enhanced with features that weren’t possible before, they will naturally prefer the modernized and better way to access, manage, and transfer securities. This will accelerate demand and drive adoption”.
By merging the strengths of established capital market infrastructure with the efficiency and innovation of blockchain, MTCM and Tokeny are redefining how structured products are issued, distributed, and managed. The launch of Luxembourg’s first dual-format issuance framework marks a pivotal moment in the evolution of global finance, setting a new standard for flexibility, compliance, and investor empowerment in the digital age. With this initiative, MTCM and Tokeny are not only shaping the future of securitization but also paving the way for a more inclusive, efficient, and technologically advanced financial ecosystem.
Frequently Asked Questions (FAQ)
What specific token standard is used to guarantee compliance within this framework?
The architecture relies exclusively on the ERC-3643 protocol standard (formerly T-REX). Unlike standard permissionless tokens, this open-source suite embeds a decentralized identity layer (ONCHAINID) that programmatically interrupts transfers and only clears peer-to-peer movements if both the buyer and seller hold valid, whitelisted compliance certificates.
Can different cell compartments inside the same platform issue separate tokenized strategies?
Yes. By using a multi-compartment master vehicle, a single platform can dedicate Compartment A to traditional ISIN notes, Compartment B to dual-format structures, and Compartment C to purely digital allocations. Absolute statutory ring-fencing ensures that the liabilities, triggers, or performance of one cell carry zero legal recourse or cross-contamination risk against adjacent compartments.
How long does it typically take to deploy a dual-format compartment?
Onboarding an alternative private credit, real estate, or infrastructure asset pool onto an established multi-compartment platform requires between 2 and 4 weeks. This structured timeline includes configuring smart contract parameters, customizing compliance rule whitelists, and setting up clearing pathways for both traditional and digital participants.
How are yield payments and coupon payouts synchronized across both formats?
All incoming revenues generated by the underlying real-world assets are processed through a single, unified SPV payment waterfall. The platform servicer simultaneously routes standard fiat currency distributions to traditional depository accounts for noteholders, and programmatically issues equivalent stablecoins directly to tokenized investor wallets.
Is institutional self-custody supported under the MTCM-Tokeny framework?
Yes. Professional and qualified institutional allocators can completely self-custody their permissioned security tokens using certified smart-contract corporate wallets. This direct wallet placement removes third-party intermediary management dependencies while reducing external custodian fees.
