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
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 newly launched framework allows for the concurrent issuance of two securities:
- An ISIN-listed note, settled via a leading international central securities depository (CSD), catering to investors comfortable with traditional settlement processes.
- 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
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
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.
